Virgin Blue sees profit plunge 55 percent

SYDNEY: Australian airline Virgin Blue Holdings Ltd. reported Tuesday a nearly 55 percent drop in annual net profit, hurt by record jet fuel costs.

The airline posted a net profit after tax of 97.7 million Australian dollars (US$84.5 million) for the year ended June 30, down from A$215.8 million (US$186.6 million) in the previous year. Earnings per share fell 54.9 percent from 20.6 Australian cents to 9.3 cents.

``Based on current market conditions and fuel prices, a positive result for the current financial year is expected, but remains a challenge,'' the company said in a statement.

In June, Virgin Blue implemented a program intended to help mitigate the rising cost of fuel. The group said it would cut costs by A$50 million (US$43 million) in the 2009 financial year, increase ticket prices by an average of 5 Australian dollars (US$4.30) across 55 percent of its routes in Australia and freeze management salaries. Virgin Blue is Australia's second largest airline, after national carrier Qantas Airways Ltd.