AUSTRALIAN VIRGIN BLUE TO RETURN TO THE BLACK IN 2010

Discount Australian airline company Virgin Blue Holdings Ltd (ASX:VBA) says it expects to return to profitability in fiscal 2010 because of lower fuel prices and better passenger loads.

However, it said uncertainty still remained about the pace of global economic recovery and the effect of continuing

"The group now estimates its reported net profit before tax and exceptional Items for the 2010 financial year will be in the range of $80-110 million, compared to a loss of $93 million for the prior year," Virgin Blue said in a statement to the Australian stock exchange on Thursday.

"This is consistent with the most recent guidance (given at last year's AGM) that the group would return to profitability in the year."

Virgin Blue said the forecast reflected an improvement in operating conditions in the first half of the year.

This was due mainly to a decrease in the average fuel price paid by the group to $US$92 a barrel of jet fuel compared to $US127 for the previous corresponding period and some recovery in yields for the domestic business from the market lows in early 2009.

The company noted that concerns remain around the pace of the global economic recovery and the continuing volatility in domestic and international markets.

"In particular, seasonality and competitive activity in the domestic market would see pressure on yields for the remainder of this year," it said.

(AAP) lm

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