Virgin Australia has flagged a $450 million impairment to its full-year earnings as it cuts costs as part of a wider restructure of the airline as it prepares to raise $852 million from shareholders to pay down debt.
The airline also flagged changes to the types of aircraft it uses as part of a fleet rationalisation programme. It is replacing its fleet of 16 Airbus-320 aircraft used by its low-cost subsidiary Tigerair with Boeing-737 aircraft.
Virgin said on Wednesday the bulk of the impairments and restructuring costs would be recorded in the final quarter of its 2016 financial year. The airline expects to post an underlying net profit of as much as $60 million when it reports on Aug. 4.
This includes as much as $100 million of…
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