Virgin Australia sinks to $700m statutory loss
Virgin Australia has sunk to a net statutory loss of A$653.3m despite its strongest underlying profit in a decade and record revenue. The after tax loss for the year June 30 followed came after the airline was in the red by A$185.8m last year. The airline, which is expanding operations in this country following a bust up with Air NZ, said the heavy loss was due to major accounting adjustments following a review of the group's asset values in accordance with accounting standards. "As a result of the review, approximately A$4521m in deferred tax assets have been derecognised and there has been a A$120.8m impairment of the assets of the Virgin Australia International business," said Virgin CE John Borghetti. Underlying profit before tax was A$109m, an improvement from last year's A$3.7m loss. During the past year the group faced a A$45m fuel headwind. Group revenue was up 7.4% to A$5.4b, a record. Borghetti said the Virgin Australia domestic business recorded its highest earnings margin results since domestic segment reporting began. The domestic business makes up about two thirds of the airline's revenue.<br/>
https://portal.staralliance.com/cms/news/hot-topics/2018-08-29/unaligned/virgin-australia-sinks-to-700m-statutory-loss
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Virgin Australia sinks to $700m statutory loss
Virgin Australia has sunk to a net statutory loss of A$653.3m despite its strongest underlying profit in a decade and record revenue. The after tax loss for the year June 30 followed came after the airline was in the red by A$185.8m last year. The airline, which is expanding operations in this country following a bust up with Air NZ, said the heavy loss was due to major accounting adjustments following a review of the group's asset values in accordance with accounting standards. "As a result of the review, approximately A$4521m in deferred tax assets have been derecognised and there has been a A$120.8m impairment of the assets of the Virgin Australia International business," said Virgin CE John Borghetti. Underlying profit before tax was A$109m, an improvement from last year's A$3.7m loss. During the past year the group faced a A$45m fuel headwind. Group revenue was up 7.4% to A$5.4b, a record. Borghetti said the Virgin Australia domestic business recorded its highest earnings margin results since domestic segment reporting began. The domestic business makes up about two thirds of the airline's revenue.<br/>
