Virgin Blue sees annual profits decrease

Virgin Blue, an Australian airline that dominates a third of the Australian aviation domestic market, has announced that their annual profits have dropped considerably as a result of fuel bills.

Fuel prices have reached an all time high and many airlines are feeling the pinch. Virgin Blue is the second largest airline operating in Australia and they predict their pre-tax profits to have decreased by a staggering 55%. It has been reported that the airline has made AUS$99.7 million dollars between January and the end of June 2008. This is over 50% less than the same period in the previous year, which was AUS$215.8 million.

Virgin Blue predicted that the financial year of 2008 would be difficult as a result of soaring fuel prices. In spite of recent decreases in crude oil fares, the airline has had to introduce schemes to improve annual profit. Such schemes included introducing baggage surcharges and higher air fares.

Virgin Blue dominate a third of the domestic market in Australia, Qantas and Jetstar are rival Australian airlines who have also experienced the detrimental effect of rising fuel prices.