Virgin flags full-year loss

Airline says difficult economic and competition environments, carbon tax, restructuring costs will weigh on full-year loss after tax.

Virgin Australia Holdings (VAH) expects to report a full-year loss of between $90 million and $110 million as the difficult economic environment and restructuring costs weigh on the airline.

In a statement to the Australia Securities Exchange, Virgin said its performance for the 2013 financial year has been impacted by a number of factors, including the difficult economic and competitive environment, one-off pre-tax restructuring and transformation costs, as well as the carbon tax. 

"As a result of these factors, Virgin Australia expects a statutory loss after tax in the range of $95 million to $110 million," the group said.

Virgin said it had also taken longer than usual to finalise revenue recognition during the second half of the 2013 financial year as a result of the company’s complete transition from a ticketless environment to "a more complex ticketed environment following the introduction of a new reservation platform".

The airline announced its pre-tax costs of the carbon tax for the full year are estimated to be between $45 million to $50 million and are unable to be recovered due to "weak economic conditions and the competitive environment".

The company's share price tumbled by 5.5 cents to 43 cents at 1048 AEST.

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