Virgin Australia Group releases Q3FY2017 trading update

    Virgin Australia Group announced (18-May-2017) its Q3FY2017 trading update. Performance was impacted by costs associated with the Group’s fleet simplification programme, the adverse effect of foreign exchange fluctuations on debt and operating costs, subdued domestic industry trading, withdrawal of Tigerair Australia‘s Bali operations and Queensland weather events in Mar-2017. Key highlights from the update include:

    • Underlying Loss Before Tax of AUD62 million (USD46 million) for Q3FY2017;
    • Statutory Loss After tax of AUD69 million (USD51 million) Q3FY2017;
    • Underlying Loss Before Tax of AUD20.2 million (USD15 million) for FY2017;
    • Statutory Loss After tax of AUD90.6 million (USD67.6 million) for FY2017;
    • The Group remains on track to meet its full year Financial Leverage target of between 4.0x and 4.5x as at 30-Jun-2017;
    • During Q3FY2017, the Group’s debt was reduced by more than AUD200 million (USD149 million);
    • The Group continues to maintain a strong cash balance and liquidity position, which has increased 50% year on year.