Virgin Australia changes course, sees underlying loss in 2019

Virgin Australia Holdings said Friday it expects to record a loss in fiscal 2019 due to tougher domestic conditions, as well as fuel price and foreign exchange headwinds. The announcement marks a drastic shift in tone for the airline operator, which in February posted its best half-year profit in a decade on the strength of its domestic business. Underlying earnings for 2019 will be at least A$100m (US$68.93m) lower than the $64.4m reported in 2018, the company said. “While we have continued to grow revenue, this announcement shows that our business needs to become more resilient to challenges such as weaker demand, high fuel prices and the foreign exchange environment,” said Group CE Paul Scurrah. The company flagged lower demand in both its corporate and leisure sectors, owing to weaker spending in Australia. <br/>