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For Personal Use Only Use Personal for MOSCOW Virgin Australia Annual Report 2012 For personal use only MOSCOW DUBLIN MANCHESTER MINSK LONDON DUSSELDORF FRANKFURT BRUSSELS PARIS MUNICH ASTANA SEATTLE GENEVA MILAN PORTLAND MINNEAPOLIS ALMATY BOSTON DETROIT ISTANBUL COLUMBUS SALT LAKE CITY CHICAGO NEW YORK BEIJING INDIANAPOLIS SACRAMENTO OAKLAND ATHENS LARNACA PESHAWAR CINCINNATI SEOUL SAN FRANCISCO WASHINGTON ERBIL ISLAMABAD CHENGDU LAS VEGAS TOKYO SAN JOSE MEMPHIS BAGHDAD TEHRAN RALEIGH/DURHAM LAHORE CHONGQING FUKUOKA NAGOYA DAMASCUS ATLANTA CASABLANCA BEIRUT SHANGHAI OSAKA LOS ANGELES PHOENIX SAN DIEGO AMMAN DALLAS ALEXANDRIA KUWAIT KATHMANDU CHANGSHA WUHAN HOUSTON NEW ORLEANS TAMPA CAIRO DELHI ORLANDO FORT LAUDERDALE DAMMAN KUNMING XIAMEN MIAMI ABU DHABI KARACHI SHENZHEN BAHRAIN DHAKA TAIPEI DOHA AHMEDABAD RIYADH HONG KONG MUSCAT KOLKATA GUANGZHU HONG KONG LIHUE HONOLULU JEDDAH CANCUN HANOI MUMBAI KAHILUI KONA HYDERABAD YANGON CHIANG MAI BANGALORE DANANG MANILA KHARTOUM BANGKOK CHENNAI KOCHI SIEM REAP COIMBATORE PHNOM PENH KOH SAMUI HO CHI MINH CITY CEBU THIRUVANANTHAPURAM PHUKET COLOMBO LANGKAWI DAVAO PENANG KOTA KINABALU MALE KUALA LUMPUR BANDAR SERI BEGAWAN SINGAPORE MEDAN KUCHING MANADO NAIROBI PEKANBARU BALIKPAPAN PALEMBANG JAKARTA SURABAYA BANDUNG LOMBOK DENPASAR / BALI PORT MORESBY SOLO SOLOMON ISLANDS DARWIN CHRISTMAS ISLAND APIA / SAMOA PORT VILA COCOS ISLAND CAIRNS NADI / FIJI BROOME TOWNSVILLE PORT HEDLAND WHITSUNDAY COAST HAMILTON ISLAND RAROTONGA NUKU’ ALOFA KARRATHA MT ISA MACKAY ULURU EMERALD ROCKHAMPTON NEWMAN GLADSTONE (AYERS ROCK) HERVEY BAY JOHANNESBURG SUNSHINE COAST BRISBANE GOLD COAST BALLINA / BYRON BAY PERTH COFFS HARBOUR PORT MACQUARIE MILDURA NEWCASTLE CAPE TOWN SYDNEY ADELAIDE CANBERRA ALBURY AUCKLAND MELBOURNE HAMILTON LAUNCESTON WELLINGTON HOBART CHRISTCHURCH QUEENSTOWN DUNEDIN For personal use only virgin australia group of airlines, air new zealand alliance, delta alliance, etihad alliance and singapore airlines alliance Virgin Australia domestic Virgin Samoa Virgin Australia international short haul Virgin Australia international long haul Air New Zealand alliancealliance Delta Air Lines Alliance Etihad Airways Alliance Singapore Airlines Alliance Virgin America Virgin Atlantic Hawaiian Airlines Delta Air Lines and other North American partner destinations MOSCOW DUBLIN MANCHESTER MINSK LONDON DUSSELDORF FRANKFURT BRUSSELS PARIS MUNICH ASTANA SEATTLE GENEVA MILAN PORTLAND MINNEAPOLIS ALMATY BOSTON DETROIT ISTANBUL COLUMBUS SALT LAKE CITY CHICAGO NEW YORK BEIJING INDIANAPOLIS SACRAMENTO OAKLAND ATHENS LARNACA PESHAWAR CINCINNATI SEOUL SAN FRANCISCO WASHINGTON ERBIL ISLAMABAD CHENGDU LAS VEGAS TOKYO SAN JOSE MEMPHIS BAGHDAD TEHRAN RALEIGH/DURHAM LAHORE CHONGQING FUKUOKA NAGOYA DAMASCUS ATLANTA CASABLANCA BEIRUT SHANGHAI OSAKA LOS ANGELES PHOENIX SAN DIEGO AMMAN DALLAS ALEXANDRIA KUWAIT KATHMANDU CHANGSHA WUHAN HOUSTON NEW ORLEANS TAMPA CAIRO DELHI ORLANDO FORT LAUDERDALE DAMMAN KUNMING XIAMEN MIAMI ABU DHABI KARACHI SHENZHEN BAHRAIN DHAKA TAIPEI DOHA AHMEDABAD RIYADH HONG KONG MUSCAT KOLKATA GUANGZHU HONG KONG LIHUE HONOLULU JEDDAH CANCUN HANOI MUMBAI KAHILUI KONA HYDERABAD YANGON CHIANG MAI BANGALORE DANANG MANILA KHARTOUM BANGKOK CHENNAI KOCHI SIEM REAP COIMBATORE PHNOM PENH KOH SAMUI HO CHI MINH CITY CEBU THIRUVANANTHAPURAM PHUKET COLOMBO LANGKAWI DAVAO PENANG KOTA KINABALU MALE KUALA LUMPUR BANDAR SERI BEGAWAN SINGAPORE MEDAN KUCHING MANADO NAIROBI PEKANBARU BALIKPAPAN PALEMBANG JAKARTA SURABAYA BANDUNG LOMBOK DENPASAR / BALI PORT MORESBY SOLO SOLOMON ISLANDS DARWIN CHRISTMAS ISLAND APIA / SAMOA PORT VILA COCOS ISLAND CAIRNS NADI / FIJI BROOME TOWNSVILLE PORT HEDLAND WHITSUNDAY COAST HAMILTON ISLAND RAROTONGA NUKU’ ALOFA KARRATHA MT ISA MACKAY ULURU EMERALD ROCKHAMPTON NEWMAN GLADSTONE (AYERS ROCK) HERVEY BAY JOHANNESBURG SUNSHINE COAST BRISBANE GOLD COAST BALLINA / BYRON BAY PERTH COFFS HARBOUR PORT MACQUARIE MILDURA NEWCASTLE CAPE TOWN SYDNEY ADELAIDE CANBERRA ALBURY AUCKLAND MELBOURNE HAMILTON LAUNCESTON WELLINGTON HOBART CHRISTCHURCH QUEENSTOWN DUNEDIN For personal use only virgin australia group of airlines, air new zealand alliance, delta alliance, etihad alliance and singapore airlines alliance Virgin Australia domestic Virgin Samoa Virgin Australia international short haul Virgin Australia international long haul Air New Zealand alliancealliance Delta Air Lines Alliance Etihad Airways Alliance Singapore Airlines Alliance Virgin America Virgin Atlantic Hawaiian Airlines Delta Air Lines and other North American partner destinations Virgin Australia group of airlines preview PASSENGERS CARRIED (millions) TOTAL REVENUE ($ millions) 2002 3.2 2002 390.9 2003 6.6 2003 924.3 2004 10.1 2004 1,362.3 2005* 19.7 2005* 2,546.6 2006* 10.5 2006* 1,392.5 2007 15.3 2007 2,169.1 2008 16.7 2008 2,334.8 2009 18.2 2009 2,635.4 2010 18.6 2010 2,981.8 2011 18.6 2011 3,271.0 2012 19.5 2012 3,920 * Notes: 2005 figures over 18 months; 2006 figures over 9 months * Notes: 2005 figures over 18 months; 2006 figures over 9 months For personal use only 2 annual report 2012 RPKs/ASKs (millions) FINANCIAL HIGHLIGHTS 2012 2011 $m $m 3,169 2002 3,898 Total Revenue 3,919.5 3,271.0 7,194 Segment EBIT1 151.0 (14.0) 2003 9,078 Underlying Profit/(Loss) before Tax2 82.5 (66.6) 11,584 2004 14,024 Statutory Net Profit/(Loss) after Tax 22.8 (67.8) 23,067 2005* 30,042 3 2012 2011 12,094 OPERATING STATISTICS (Group) 2006* 15,703 Group Yield 11.09¢ 9.90¢ 17,563 2007 Available Seat Kilometres 39.8bn 37.1bn 21,642 Passengers Carried 19.4m 18.6m 18,764 2008 4 23,308 Revenue Load Factor % 78.1% 79.8% 21,800 2009 For personal use only 27,816 1 Segment EBIT is a non-statutory measure as per note 6 of the consolidated financial 2010 26,894 statements. This non-IFRS information has not been audited or reviewed by KPMG. 34,012 2 Underlying Profit/(Loss) Before Tax (PBT) is a non-statutory measure and it excludes ineffective cash flow hedges and non-designated derivatives and non-recurring items. 2011 29,569 This non-IFRS information has not been audited or reviewed by KPMG. For explanations 37,092 of Underlying Profit Before Tax see the Review and Results of Operations, section 6.1 of the Directors’ report. 2012 31,100 3 This non-IFRS information has not been audited or reviewed by KPMG. 39,800 4 Revenue Load Factor means Revenue Passenger Kilometres (RPK) as a percentage of Available Seat Kilometres (ASK). Revenue Load Factor metrics include Virgin Australia and International Alliance Partner ASK and RPK data on our revenue-share routes with International Alliance Partners Air New Zealand and Delta Air Lines. Revenue Passenger Kilometres (RPKs) Available Seat Kilometres (ASKs) * Notes: 2005 figures over 18 months; 2006 figures over 9 months 3 Virgin Australia group of airlines the chairman’s report he 2012 financial year Zealand, Delta Air Lines, Etihad represents the second year of Airways and Singapore Airlines, TVirgin Australia’s three year launched Business Class across the Game Change Program strategy. The majority of the domestic network, company has achieved a remarkable significantly expanded its presence For personal use only transformation during this period, in regional Australia and relaunched positioning Virgin Australia as its international operations under a genuine competitor in all key the new Virgin Australia brand and Australian aviation markets. identity. In the past 12 months, the company As a result of the significant progress has established a global network on implementing the Game Change with our alliance partners Air New Program strategy, the company 4 annual report 2012 A key priority for the company and All of this has been achieved against partnerships during the year with the Board a backdrop of strong competition Surf Life Saving Australia, V8 and continuing uncertainty in the Supercars and the Biennale of economic environment. This is Sydney and we are working closely has been a testament to the outstanding to support them throughout our positioning efforts of our Chief Executive Officer network. John Borghetti, our dedicated Diversity is also important to management team and our 8,300 ensuring the sustainability of the the airline talented team members. business. I am pleased to report that A key priority for the company and women now make up 51 per cent of to be a the Board has been positioning the the team and that close to half of airline to be a sustainable business Group Executive positions are held sustainable for the long-term. Central to this is by women. We have also grown the the work that the company has been number of Indigenous Australians business for doing as part of the Game Change we employ from 4 to 81 over the Program strategy to build a strong past three years. Virgin Australia’s the long-term. operating platform for the business greatest asset is its people and we and cater for future growth. Over the will continue to focus on developing year the company has significantly a diverse, engaged team to set us Neil Chatfield strengthened systems and processes apart from others in the industry. Chairman in areas such as Safety, Treasury, As the business continues to build Procurement and Information on the resilient platform provided by Technology and there will be further the Game Change Program, I believe work on this into the 2013 financial that Virgin Australia is well prepared year. for the opportunities and challenges We are also acutely aware of the that lie ahead. importance of reducing our impact In closing, I would like to express on the environment and supporting my gratitude to John, my fellow the Australian economy. board members and all of our We have developed a combined team members. It is because of approach of fuel efficiency, waste their dedication that we have been reduction, sustainable aviation able to maintain the momentum in biofuel development and carbon our strategy and transform Virgin offsetting to help reduce our Australia into the airline that it is emissions as a business. Therefore, today. achieved an Underlying Net Profit despite our recent growth our Before Tax1 of $82.5 million, which is I would also like to thank our emissions intensity is well below the an improvement of $149.1 million on customers and shareholders for global industry average.
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