Virgin Australia Holdings (ASX: VAH) has seen its shares fly, after the upstart airline told the market it expects its first half results to be in-line with expectations.
At lunchtime, Virgin shares were up 5.4% to 33.2 cents.
You might be surprised to learn that Virgin isn’t exactly reporting a profit. The company says it expects to report a $49 million loss for the first six months.
I guess investors were expecting much worse.
Ongoing air wars with its larger rival Qantas Airways (ASX: QAN) in the domestic market are hurting both airlines, as Qantas sticks to its ‘line-in-the-sand’ 65% market share at any cost.
Yesterday, Virgin shares fell as much as 16%.
Only 26% of the total shares are available for trading, with Air New Zealand (ASX: AIZ), Singapore Airlines, Etihad and Sir Richard Branson’s Virgin Group holding the remainder.