Virgin Australia posts $45.0m loss for first quarter ending 30th September 2014

Virgin Australia reported an underlying loss before tax of $45.0m for the first quarter of the 2015 financial year, representing an 18.3% improvement over the prior corresponding period. The first quarter is traditionally a seasonally weaker period for Virgin Australia. Revenue increased 1.3% on the prior corresponding period. Notwithstanding the growth in high yielding passengers, the continued weakness in leisure demand resulted in Group Yield in line with prior year. Revenue load factors for the first quarter were slightly lower compared to the 2014 financial year. The business incurred restructuring charges of $8.2m and hedging ineffectiveness costs of $14.3m, reflecting the realisation of gains recognised in prior periods. Underlying Cost per Available Seat Kilometre (CASK) increased by less than 1%, delivered on the back of strong cost programs implemented during the quarter.