NT Airports don’t expect a reduction in Virgin flights

Virgin Australia is looking at NT flights as part of a national review into domestic flights after a seventh consecutive annual deficit.

THE future of Northern Territory flight routes are up in the air, following a national review into domestic flights from Virgin Australia.

The company, which on Wednesday announced its seventh straight annual loss, said the corporate and head office job cuts were aimed at saving $75 million by the end of the 2020 financial year.

“There is no doubt that we are operating in a tough economic climate with high fuel, a low Australian dollar and subdued trading conditions,” chief executive Paul Scurrah said.

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“However, today’s financial results tell us loud and clear that we need to reduce costs.”

He said a strategic review would consider changes to its fleet, routes and agreements with airports to further reduce costs.

Virgin Australia will be reviewing all domestic flight routes following a seventh consecutive annual deficit. (Photo by Cameron Spencer/Getty Images)

“The group intends to further reduce flying across elements of its short-haul international and domestic network to meet demand and maximise route profitability, and expects H1 FY20 capacity growth to be negative,” it said. Despite this and NT Airports spokeswoman said she didn’t expect any cuts to the service in the Northern Territory.

“NT Airports hasn’t been contacted by Virgin Australia with regard to any potential changes to flight scheduling to the Northern Territory,” she said.

“At this stage we don’t expect any reduction in services to take place.”

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They said Virgin did not know how long the review would take, or when cuts could be made.

The airline announced it would also be cutting 750 jobs in a bid to reduce costs and operate more efficiently.

Virgin shares were down 6.06 per cent to 15.5 cents at 1335 AEST on Wednesday.

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VIRGIN RECORDS ANOTHER FY LOSS

* Full-year net loss of $349.1m from $681.0m loss in pcp

* Revenue up 7.5pct to $5.827b

* No dividend declared.