The Virgin Australia Group (ASX:VAH) announce cost cutting measures

The Virgin Australia Group (ASX:VAH) today announced additional reductions in capacity and cost measures to address the impact of COVID-19 and has also reassured guests of the onboard health and safety measures to enhance their protection.

Group capacity reduction is to increase from 3 per cent to 6 per cent in 2H20 and increase to 7.7 per cent in 1H21.

Domestic capacity reduction to increase from 3 per cent to 5 per cent for 2H20 and increase to 6.2 per cent in 1H21.

International capacity reduction to increase from 4.8 per cent to 8 per cent in 2H20 and increase to 10.3 per cent in 1H21.

This includes reducing Los Angeles, Japan, and Trans-Tasman services and the exit of Auckland services between Tonga and Rarotonga.

There is a temporary reduction in Chairman and Independent Board Director fees by 15 per cent.

Shares in the Virgin Australia Group (ASX:VAH) closed -16.67 per cent lower at $0.06 yesterday.
 
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Source: Finance News Network