Virgin to go cash flow positive, Velocity EBIT to grow

Company News

by Jessica Amir

Virgin Australia Holdings (ASX:VAH) is expecting to report positive free cash flow performance for the 2017 financial year of up to $50 million ($0 to $50 million).

The airliner says that is a $90 million to $140 million improvement on the prior corresponding period.

The company also reconfirmed its 2017 financial year underlying group performance will improve, on the fourth quarter’s 2016 financial year result.

While Virgin’s Velocity segment EBIT performance for the first-half of 2017 financial year declined by 7 percent, its second half is tipped to be 10 per cent to 13 per cent higher than the prior corresponding period.

For the entire financial year, Velocity EBIT will improve by 2-3 per cent compared to 2016.

Shares in Virgin Australia Holdings (ASX:VAH) are trading 4.38 per cent higher to 16.7 cents
 

Jessica Amir

Finance News Network
Jessica joined FNN in January 2017 with a passion for equities and funds management. As Head of News, she has been a broadcast journalist for over seven years, specialising in finance. She has been a journalist with Sky News Business, ABC 1, ABC's The Business and ABC24. She’s also worked as a TV reporter for regional Channel 7 and 9. She also previously worked as a financial planner and real estate agent.