Virgin Australia records seven straight yearly losses

Virgin Australia, the No. 2 carrier in Australia is to slash its workforce after reporting its seventh annual loss in a row.

Virgin on Wednesday announced a $315.40 million loss for the financial year to 30 June 2019.

On a positive note, the result was a considerable improvement on the airline’s result last year, which was more than double that, at $653.30 million.

New CEO and Managing Director Paul Scurrah, who joined the airline in March, said Wednesday the axe would be swung across the carrier’s workforce, with 750 jobs to go in the company’s Brisbane and Sydney offices.

“Our announcements today around our organisational structure are designed to start the process of removing overhead costs from our business through simplifying our structure, removing duplication and driving stronger accountability around revenue and revenue quality,” the CEO said.

He said the Brisbane and Sydney offices had become overcrowded and the cuts will mean more space in which to work for remaining staff.

“It will relieve the pressure but the impact on real estate is not what I am worried about now,” he said. “I’m focused on transition plans for those staff members to ensure they feel like they’ve been respected on the way out.”

Domestic loads are believed to be strong across Australian routes, but Virgin Australia, as with Qantas, is finding it difficult to operate international flights profitably.