Virgin Blue Holdings (VBA) is one of Australia’s low cost (budget) airlines, whose main competitor is Qantas (QAN).
Although the majority of its operations are domestic, it has established international operations under the Pacific Blue and Polynesian Blue brands.
On October 11, VBA announced that the recent problems with its ticketing system will impact pre-tax profit by $15 million – $20 million.
VBA advised that it will actively pursue all avenues to recover the cost, and that prior to the outage, had seen trading conditions improve compared to the same period last year.
In fact, VBA has been one of the hot stocks in recent months, surging from a low of 28 cents in late August, to be currently trading around 47 cents.
VBA slumped 3.2% on the day of the announcement, making it one of the worst performers in the Australian stock market.
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