Higher jet fuel price to hit Virgin Blue

[Yada Yada]

Higher jet fuel price to hit Virgin Blue
May 9, 2006 - 8:15PM
© 2006 AAP

The impact of higher jet fuel prices will be a key issue when airline Virgin Blue Holdings Ltd reports its first half results on Wednesday.

Analysts expect Virgin Blue to announce an interim net profit of approximately $71 million for the six months ended March 31, down around six per cent on the corresponding period in the previous year.

The anticipated earnings decline is linked to the recent spike in jet fuel prices and the fact that Easter fell in April rather than March this year.

Shaw Stockbroking analyst Brent Mitchell said Virgin Blue's policy of not hedging against higher oil prices meant its earnings outlook was volatile.

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Nonetheless, it is good to see they are posting a profit.

[JohnK]

Nonetheless, it is good to see they are posting a profit.

Under the circumstances 71 million half year profit is still a very good result.