Virgin's massive loss: how safe are my Velocity points?
Aug 28, 2018, 8:18 pm
#1
Original Poster
Join Date: Sep 2005
Programs: Lifetime *G (MP), Lifetime PE (Bonvoy)
Posts: 1,465
Virgin's massive loss: how safe are my Velocity points?
Virgin Australia announced a $653M loss this morning. https://www.smh.com.au/business/comp...28-p500bz.html
As I recall their Velocity programme was sold off into a separate entity so even if an Ansett-style debacle comes along my points should be safe?
As I recall their Velocity programme was sold off into a separate entity so even if an Ansett-style debacle comes along my points should be safe?
Aug 28, 2018, 11:03 pm
#2
Join Date: May 2006
Location: GA
Programs: VA-PLT, QF-GLD, DL-GM, UA-ex1K, AA-exPLT, HH-DM, IHG-PLT, MR-GLD
Posts: 8,242
If you read the entire article, it isn't very alarming. Taking away some write-offs it's a better financial year than last year. Of course, it is concerning that VA can't seem to be more profitable at a time when most airlines are in the black, but unless there is a big downturn in airline travel VA should be just fine.
Virgin chief executive John Borghetti said it was the group's strongest underlying result in a decade, and was driven by record-high earnings in its core domestic business.
"Today’s financial results show that the business is in a good position to achieve sustainable profitability going forward," Mr Borghetti said.
"Today’s financial results show that the business is in a good position to achieve sustainable profitability going forward," Mr Borghetti said.
Last edited by CPMaverick; Aug 28, 2018 at 11:13 pm
Aug 29, 2018, 1:06 am
#3
Join Date: Feb 2010
Posts: 1,857
If you read the entire article, it isn't very alarming. Taking away some write-offs it's a better financial year than last year. Of course, it is concerning that VA can't seem to be more profitable at a time when most airlines are in the black, but unless there is a big downturn in airline travel VA should be just fine.
Aug 29, 2018, 1:26 am
#4
FlyerTalk Evangelist
Join Date: Apr 2001
Location: MEL CHC
Posts: 20,992
Australia - NZ is a major short haul business market. With the end on the AirNZ/VA joint venture in Oct, the QF-Air NZ TT domestic codeshare agreement from November and Air NZ ramping up TT flights VA are the big loser on the very competitive TT routes.
Aug 29, 2018, 2:58 am
#5
Join Date: May 2006
Location: GA
Programs: VA-PLT, QF-GLD, DL-GM, UA-ex1K, AA-exPLT, HH-DM, IHG-PLT, MR-GLD
Posts: 8,242
It's far too early to call VA a loser in the TT shuffle (which hasn't even come into effect yet).
VA has a strong core domestic business. They aren't folding anytime soon.
VA has a strong core domestic business. They aren't folding anytime soon.
Aug 29, 2018, 2:39 pm
#6
FlyerTalk Evangelist
Join Date: Nov 2004
Location: Melbourne
Programs: ►QFWP/LTG►VA WP►HyattExpl.►HiltonGold►ALL Silver
Posts: 21,991
The headline really should be:
Profit actually increased by $112M.
Virgin Australia posts underlying profit of $109M ($653M "loss" after writeoffs)