News: VAH Virgin Australia Holdings Posts FY Group Underlying Loss Before Tax Of $71.2 Million

Aug 28 (Reuters) - Virgin Australia Holdings Ltd (VAH) :

• FY GROUP UNDERLYING LOSS BEFORE TAX $71.2 MILLION
• EXPECTS CAPACITY TO BE FURTHER REDUCED IN H1 FY20
• ANTICIPATES FURTHER FY20 FUEL AND FOREIGN EXCHANGE HEADWINDS OF APPROXIMATELY $100.0 MILLION WHEN COMPARED TO FY19
• REDUCTION OF 750 ROLES FROM WORKFORCE
• GROUP HAS HEDGED IN EXCESS OF 90 PER CENT OF ITS FORECAST FY20 FUEL CONSUMPTION AND HAS EXTENDED HEDGING INTO FY21
• TARGETING REDUCTION OF 750 CORPORATE AND HEAD OFFICE ROLES, REPRESENTING $75.0 MILLION IN COST SAVINGS BY FY20 END
• ALL CURRENT SUPPLIER AGREEMENTS WILL BE REVIEWED
• AGREEMENTS UNDER REVIEW INCLUDE WITH AIRCRAFT LESSORS, AIRPORTS AND OTHER SUPPLIERS; TARGETING COST SAVINGS OF AT LEAST $50 MILLION
• START OF FY20 HAS SEEN A CONTINUATION OF SOFTER CONDITIONS EXPERIENCED IN H2 FY19
• BENEFITS OF BUSINESS IMPROVEMENT INITIATIVES WILL BEGIN TO BE REALISED DURING FY20
• REMAINS COMMITTED TO LONG-TERM GROWTH OF VELOCITY BUSINESS AND INTENDS TO REMAIN MAJORITY SHAREHOLDER IN VELOCITY
• IN PROCESS OF REVIEW OF ITS FLEET, NETWORK AND CAPACITY
• INTENDS TO FURTHER REDUCE FLYING ACROSS SHORT-HAUL INTERNATIONAL AND DOMESTIC NETWORK; EXPECTS H1 FY20 CAPACITY GROWTH TO BE NEGATIVE