Second Quarter Results
Virgin Express Holdings plc Reports Second Quarter Results
Announces New Service and Focus City - BERLIN
Brussels, August 12, 1999 - Virgin Express Holdings, plc [Nasdaq:VIRGY - Brussels:VIR] reported net income of 3.32 million (BEF 134 M) for the three months ended June 30 1999 compared with last years second quarter earnings of 3.64 million (BEF 147 M). For the six months ended 30 June 1999, the company had net income of 0.27 million (BEF 11 M) as compared to a net loss of 0.09 million (BEF 4 M). Net income per IDS and ADS for the quarter are as follows:
BEF per IDS BEF 29
$ per ADS $0.26
Average Shares 5,110,
Total revenues increased 6.3 % to 78.1 million (BEF 3.15 B) in the quarter ended 30 June 1999. The company?s scheduled revenues increased 7.7% to 47.2 million (BEF 1.90 B) in the quarter as a result of a 6.2% capacity increase and a 1 point increase in load factor to 79.5%. Unit revenues in scheduled service increased to 6.49 euro cents per ASK (BEF 2.62 per ASK). Charter revenues increased 5.8% to 27.0 million (BEF 1.09 B) on 11.1% more block hours flown.
For the six month period ended 30 June 1999, total revenues increased 12.8% to ?132.2 million (BEF 5.33 B). Scheduled service revenues increased 13.2% to 85.9 million (BEF 3.46 B) and charter revenue was up 16% in the six month period to 39.2 million (BEF1.58B).
Total operating expenses increased 8.9% to 73.5 million (BEF 2.96 B) in the second quarter of 1999 and 13.1% to 133.2 million (BEF 5.37 B) for the six month period. This increase was principally a result of 8% more block hours flown in the second quarter and 16% more block hours flown in the six-month period. Fuel expense was flat in the quarter as a result of lower average prices but 14% more volume consumed. Operating expenses in the second quarter were impacted by significant air traffic control delays and aircraft re-routings as a result of the conflict in Kosovo. Particularly, this caused charter blocks hours flown to increase by 11% and charter ASK?s and revenue to increase by only 6%.
New Service for Berlin
Virgin Express announced today that it will begin offering non-stop scheduled service from Berlin to London Stansted, Rome Fumicino and Brussels on November 10, 1999. In addition, Berlin passengers will be offered one-stop service through Brussels to Barcelona and Madrid, and to Nice beginning April 2000 and via Stansted to Shannon on Ireland?s west coast. Service from Berlin will be operated by Virgin Express (Ireland) Ltd.
"Berlin is a great addition to the Virgin Express network. We will be the first low-fare carrier to serve this exciting new German capital with great fares to five of Europe?s favorite destinations," said Chief Executive Jim Swigart.
With the exception of historical factual information, the statements made in this press release constitute forward-looking statements under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on current expectations and involve certain assumptions, risks and uncertainties that could cause actual results to differ materially from those included in or contemplated by the statements. The Company disclaims any obligation to update any forward-looking statements as a result of developments occurring after the issuance of this press release. |
