Virgin the third airline to blame carbon pricing for loss
VIRGIN Australia posted a $98.1 million loss in 2012/13, citing a hefty carbon tax bill and fierce competition for the result.
In fact, the airline became the third in two days to blame carbon pricing, which came into effect on July 1 last year, for adversely affecting their bottom lines.
On Thursday, Qantas and Regional Express said the measure had added $106 million and $2.4 million respectively to operating costs.
Rex executive chairman Lim Kim Hai also blamed the carbon tax for a plunge in sales, which led to a 5% fall in revenue
Virgin's carbon tax costs came in at $47.9 million, which it was unable to recover due to strong competition in the aviation market.
On Friday Virgin CEO John Borghetti attributed the company's hefty loss, which had been flagged, to the introduction of the carbon tax, tough economic conditions, significant one-off tax restructuring and transformation costs.
Tax restructuring cost the company a one-off payment of $105 million.
Virgin's net profit in the previous year was almost $23 million.
Investors reacted to the announcement on Friday, with its share price down 3% in trading.