Virgin Blue Holdings Ltd (ASX:VBA) has warned that its 2011 financial year profit is expected to fall to a net loss of between $30 million to $80 million.
The forecast is well under the $21.3 million net profit Virgin booked in the 2010 financial year.
CEO and managing director John Borghetti says an unprecedented number of significant events, such as natural disasters and a sharp spike in fuel prices, have severely impacted consumer confidence.
Last month the airline announced its first half net profit had fallen 62 per cent.
Virgin says at the time fuel prices were the highest since 2008 and having since risen further, added an extra $50 million to the company’s second half.
The airline also expects to take a $15 million hit from the Christchurch earthquake, while the Queensland floods and Cyclone Yasi are likely to cost $50 million.
In the first half of the 2011 financial year, Virgin Blue’s net profit dropped to $23.8 million.
