Virgin reports 175 million dollar loss in first 3 Quarter
02-02-2009, 11:57 AM
#1
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Virgin reports 175 million dollar loss in first 3 Quarter
I don't have the link but it's in yahoo finance can someone post it for me thanks...sure the investors don't like this...not as bad as I thought it would be considering being a start up
Sorry this is Virgin America
Sorry this is Virgin America
02-02-2009, 01:12 PM
#2
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Operating revenue was $259 million. I'm surprised the loss isn't higher.
02-02-2009, 01:56 PM
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maybe yes maybe no, what was the load factor and what was the amount for startup costs, it is very expensive to get the gates set up, planes configured etc.. going forward if those expenses are excluded where do they stand. Also, being in California, is there any advantage, they do have their own problems, I don't see the cash coming from the state, they are broke.
02-02-2009, 02:06 PM
#5
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maybe yes maybe no, what was the load factor and what was the amount for startup costs, it is very expensive to get the gates set up, planes configured etc.. going forward if those expenses are excluded where do they stand. Also, being in California, is there any advantage, they do have their own problems, I don't see the cash coming from the state, they are broke.
02-02-2009, 03:23 PM
#6
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Load factor was around 80% but they omitted any RASM/CASM info. I could fly a 767 with a load factor of one and make a huge profit if the passenger paid $10k/hour for the plane. Conversely, I could have 100% LF and if the RASM didn't exceed CASM than it doesn't matter. The loss is pretty steep. DALs loss excluding the employee stock incentive for the buyout was 3X the Virgin loss. DAL revenue is $7 billion a quarter whereas Virgin revenue is only $100 M more than losses. If DAL were to show an equivalent loss it would be around $5.5 billion. Doesn't necessarily garner hope for hedge funds who are struggling themselves to stay afloat.
02-02-2009, 04:56 PM
#8
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I think the main reason they didn't want to report is because the two major investment firms that have alot of interest have been talking about bailing on their investment to Virgin. If one decides to pull out, then that might lead to Virgin having less than the required 51% US ownership. This could be a stark reality for them. Be interesting to see how it all plays out.
02-02-2009, 06:37 PM
#9
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Perhaps comparing SkyBus to VA is like comparing apples to oranges. I know Skybus posted a $16 million dollar loss over its first 3 months of operations and load factors of about 80% or so. How does VA compare?
When is it anticipated that VA will be profitable and will no longer cite start-up costs as the primary reason for their losses?
When is it anticipated that VA will be profitable and will no longer cite start-up costs as the primary reason for their losses?
02-02-2009, 08:08 PM
#10
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Two very different companies. VX had over $200 million in start-up capital; SkyBus had less than $35 million, and served very questionable places, like Punta Gorda, St.Augustine and Bedford. VX is going after hi-paying biz travellers on transcon routes like SFO/LAX-JFK/IAD and BOS. VX will survive in the short term, and their strategy is much better.
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