Virgin Australia Holdings Limited
(ASX:VAH) says it’s not aware of any information that has not been announced already that could explain the drop in its share price.
The airline has replied to a price query from the Australian Securities Exchange saying although it has not given any earnings guidance for the six months to December 2013, it is expecting a loss before tax to be materially in line with analysts' forecast of $49 million.
Virgin Australia noted worldwide market volatility and confusion over separate entity Virgin Atlantic's announcement that it intends to end its Sydney to Hong Kong service, as possible reasons for the decline.
Shares in Virgin Airlines dropped nearly 6 per cent yesterday, however they appear to be recovering in morning trade. At 11am Australian Eastern Standard time shares were trading over 3 per cent higher at 32.5 cents.
Virgin Australia announced a net loss of $98.1 million in the 2013 financial year.
