Virgin Australia FY results this Tuesday, what is expected?

[cove]

These guys need to make a profit so that is what I am hoping for. It is a tough business and VAH debt is significant.
The signs are good seeing the shares are close to a year high but that could be because Etihad has been a buyer of shares.

 

[pauly7]

These guys need to make a profit so that is what I am hoping for. It is a tough business and VAH debt is significant.
The signs are good seeing the shares are close to a year high but that could be because Etihad has been a buyer of shares.

Do they need to make money with a big daddy sitting on an oilfield as a major shareholder? DJ don't like making money anyway

Joke question but surely there is a capital arrangement there or coming with EY?

 

[Saab34]

FYI First Half they produced a $51.8m net profit

 

[sydks]

just read they reported a $22.8m after tax profit! not bad JB!

 

[smit0847]

So DJ are more profitable than QF?

 

[Justchecking]

as predicted, minor reshuffle of domestic routes and fleet, good financials, no other news.

 

[pauly7]

So DJ are more profitable than QF?

Domestic v domestic unsure.

Int v int - probably!

 

[markis10]

The international arm made $35m pre tax

 

[cove]

Shares fell back a little with the result.
The 2 year net result is minus 45 million.
Nothing brilliant but nothing too bad either.
Lots of changes needed but they are working on it now so they should survive.

 

[Must...Fly!]

Yeah cove pretty much has it IMO, nothing spectacular but nothing unexpected either. All about the future.

 

[bullerdude]

It will be interesting to see where their claim "$400m increase in operating inefficiencies" will come from - in other words, what services/staff/extras etc will be cut to save $400m.

 

[smit0847]

It will be interesting to see where their claim "$400m increase in operating inefficiencies" will come from - in other words, what services/staff/extras etc will be cut to save $400m.

Yeah they don't strike me as a very inefficient company!

Maybe more e-scanners at check-in, lounge and boarding to reduce the need for staff?

 

[pauly7]

It will be interesting to see where their claim "$400m increase in operating inefficiencies" will come from - in other words, what services/staff/extras etc will be cut to save $400m.

I'd imagine they are already pretty lean.

They can't exactly pay their frontline staff any less!

 

[amaroo]

FYI First Half they produced a $51.8m net profit

Yes, its interesting when you compare the first half v second half result......goes to show the price war is well & truly taking a toll!

 

[lovestotravel]

It will be interesting to see where their claim "$400m increase in operating inefficiencies" will come from - in other words, what services/staff/extras etc will be cut to save $400m.

Was hinting that fuel would play a major part in this...

Not sure that $400m can be simply cut.....

 

[markis10]

Yes, its interesting when you compare the first half v second half result......goes to show the price war is well & truly taking a toll!

The 2nd half is always bad thanks to holidays etc, and has been for a long time no matter which airline you are, the 1st half was extraordinary due to the two groundings. February will be interesting and a better litmus test of who does the better job as CEO.

 

[pauly7]

Yes, its interesting when you compare the first half v second half result......goes to show the price war is well & truly taking a toll!

Free kick from the Qantas unions in H1

 

[Globetrotter]

just read they reported a $22.8m after tax profit! not bad JB!

Maybe VA will invest some of their profits into bringing their appalling velocity call centre up to an acceptable standard.

 

[Justchecking]

I'd imagine they are already pretty lean.

They can't exactly pay their frontline staff any less!

Never say never! Paycuts come in all shapes and sizes and most often disguised as extra hours. Corporate Australia's love affair with salary packages for unspecified but nevertheless expected unpaid overtime is a good example.

 

[pauly7]

Never say never! Paycuts come in all shapes and sizes and most often disguised as extra hours. Corporate Australia's love affair with salary packages for unspecified but nevertheless expected unpaid overtime is a good example.

Mmmmm.... I don't know.... they are already getting grumbles from their staff who were used to just sitting people down, making a few jokes, pushing a cart down the aisle that sold hardly anything and then chatting amongst themselves for the rest of the flight / TO now having to do a lot more work as catering increases, looking after J etc for the same pay.

I think DJ will run into serious strife if they tried to do anything too overt in this area as they try and force their staff do more and more.... getting closer and closer to the QF level of service but paying them less than QF for their efforts.