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Article: Virgin's $89m warning light.(Virgin Blue Airlines)(Brief Article)
- Article from:
- Australasian Business Intelligence
- Article date:
- March 23, 2005
- Author:
CopyrightCOPYRIGHT 2005 News provided by Comtex. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Mar 22, 2005 (The Sydney Morning Herald - ABIX via COMTEX)
On 22 March 2005, discount Australian airline, Virgin Blue, announced a profit warning. The company claims its fuel costs for the year to 31 March 2006 could be $US70 million higher than originally anticipated. There is some speculation the announcement could prompt more Virgin Blue shareholders to accept Patrick Corporation's $A1.90-a-share bid for the airline. Patrick's offer is not scheduled to close until 1 April 2005, meaning the bidder could potentially secure more shares in Virgin Blue than it needs to control the group. Virgin Blue has stated that the profit warning does not equate to a profit downgrade.