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SYDNEY - Virgin Blue Holdings has forecast a 40 per cent rise in annual net profit and expects to launch its long-haul international operations by late 2008.
The airline yesterday said it expected a reported net profit of more than $A158 million ($182 million) for the 2006-7 year, an increase of 40 per cent on the previous year's A$113 million result.
The revised forecast followed an improvement in market conditions and the airline's performance as a result of initiatives under its new world carrier strategy launched last year, it said.
Virgin Blue also said its board had confirmed its in-principle supportfor an international wide-body operation, on the back of the improvedoutlook and the finalisation of its long-haul feasibility plan.
"The planning and implementation phase of this venture will now be expedited and subject to conditions such as regulatory approval, the granting of adequate bilateral access and conclusion of aircraft negotiations. The airline expects to launch international long haul operations by late 2008," it said.
Virgin Blue has been shifting its focus from being a low-cost airline into what it describes as a "new world carrier", with an increased emphasis on the lucrative business market.
Rival Qantas, which yesterday rejected an A$11 billion takeover offer from a consortium led by Macquarie Bank, upgraded its profit guidance this month.
Virgin Blue shares rose A8c to A$2.23 after the new forecast.
- AAP
