Commodities

Virgin Australia returns to loss on weak demand, fuel costs

Credit: REUTERS/DAVID GRAY

Virgin Australia Holdings on Wednesday swung to an annual underlying loss as higher fuel costs and a weaker currency weighed on the country's second-largest airline.

Aug 28 (Reuters) - Virgin Australia Holdings VAH.AX on Wednesday swung to an annual underlying loss as higher fuel costs and a weaker currency weighed on the country's second-largest airline.

The company reported an underlying pretax loss, its most closely watched measure, of A$71.2 million ($48.09 million) for the year ended June 30, compared with a A$64.4 million profit last year. (http://bit.ly/2Zs6Z7t)

Virgin in May provided guidance for an underlying loss before tax of at least A$35.6 million.

An average estimate of three analysts expected the firm to post an underlying pretax loss of A$82.5 million, according to Refinitiv data.

The company also said it is targeting a reduction of 750 corporate and head office roles. It expects A$75 million in cost savings from the move by the end of fiscal 2020.

($1 = A$1.48)

(Reporting by Niyati Shetty in Bengaluru; Editing by Stephen Coates and Maju Samuel)

((Niyati.N.Shetty@thomsonreuters.com; +918067497199;))

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