Virgin Australia has posted a “disappointing” full-year loss of $349.1 million as it threatened to slash 750 corporate and head office positions as part of a restructure.
It’s the carrier’s seventh consecutive annual loss, despite revenue rising 7.5 per cent to $5.83 billion for the 12 months to June 30.
The loss was blamed on a “challenging trading environment” in the second half of the financial year.
The company also said it would more closely integrate the functions of Virgin Australia Airlines, Virgin Australia Regional Airlines and Tigerair Australia and review all routes in its network in a bid to lower costs.
“There is no doubt that we are operating in a tough economic climate with high fuel, a low Australian dollar and subdued trading conditions,” Virgin Australia chief executive Paul Scurrah said.
“Decisions which have a direct impact on people’s livelihoods are never made lightly and I regret the need to reduce the size of our workforce so quickly.
“However, today’s financial results tell us loud and clear that we need to reduce costs.”