VBA 0.00% 35.5¢ virgin blue holdings limited

macq research

  1. 142 Posts.
    lightbulb Created with Sketch. 8
    This notes are some parts of Macquarie Private Wealth


    What a turnaround!
     Just three weeks after guiding the market to the lower end of its previously stated FY10 $80-
    $120m PBT range, VBA has revised its FY10 guidance to $20-$40m, a substantial downgrade
    implying 2H10 has gone from an expected break-even to a $40-$60m loss.
     How is this possible? We struggle to comprehend just how much conditions have deteriorated in
    the past three weeks since prior guidance an implied $40-$60m swing on the final six weeks
    expected revenues of ~$300m seems excessive. We suspect previous revised guidance could
    only have been overly optimistic in factoring in a strong rebound at the back of June.
     Still tough for V Australia. Certainly V Australia continues to lose money, with economy class
    return fares on the US route recently falling back below the ~$1,000 level. Although inbound
    demand from the US is improving, VBAs disproportionately low inbound market share relative to
    its competitors means it would not be seeing this benefit.
 
watchlist Created with Sketch. Add VBA (ASX) to my watchlist

Currently unlisted public company.

arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.