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Virgin Australia to slash jobs after seventh straight loss

Business

Virgin Australia says it will cut 750 corporate and head office positions as part of a restructure after posting a “disappointing” full-year loss of $349.1 million.

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Revenue for the 12 months to June 30 rose 7.5 per cent to $5.83 billion despite a “challenging trading environment” in the second half of the financial year.

The airline, which recorded its seventh consecutive annual loss on Wednesday, said the job cuts were aimed at saving $75 million in costs by the end of the 2020 financial year.

The company said it would more closely integrate the functions of Virgin Australia Airlines, Virgin Australia Regional Airlines and Tigerair Australia.

“There is no doubt that we are operating in a tough economic climate with high fuel, a low Australian dollar and subdued trading conditions,” Virgin Australia chief executive Paul Scurrah said.

“Decisions which have a direct impact on people’s livelihoods are never made lightly and I regret the need to reduce the size of our workforce so quickly,” he said.

“However, today’s financial results tell us loud and clear that we need to reduce costs.”

The company on Wednesday also announced the appointment of Keith Neate as its new chief financial officer, starting on September 2.

Virgin, which did not declare a final dividend, noted that there had been a “continuation of softer conditions” at the start of July.

Virgin shares were worth 16.5 cents before the start of trade on Wednesday.

-AAP

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