VIRGIN BLUE AIRLINE PREPARES FOR LOSS

MELBOURNE, March 23 (Bernama) -- Virgin Blue says high fuel prices, adverse
weather and natural disasters will push the airline to a pre-tax loss of up to
A$80 million in 2010 and 2011.

The airline group, comprising Virgin Blue, Polynesian Blue, Pacific Blue and
V Australia, said Wednesday it expected full year profit before tax and
excluding hedging ineffectiveness to be "in the range of -A$30 million to -A$80
million".

"This assumes no further significant increase in fuel prices and no material
deterioration in the trading environment," said Virgin Blue in a statement.

At the airline's 2010-2011 half year results presentation last month, Virgin
Blue chief executive John Borghetti said the second half would be "challenging",
but declined to issue specific earnings guidance, saying it would be too early
to do so.

In today's statement, Borghetti said: "We have witnessed an unprecedented
number of significant events in an extraordinarily short period of time,
including natural disasters and a sharp spike in fuel prices."

These events have severely impacted consumer confidence, resulting in a
slower than usual recovery in tourism."

Virgin Blue said since February, soaring jet fuel prices had added an extra
A$50 million to costs for the second half of 2010 ans 2011.

The airline also estimated the impact of the Christchurch earthquake at A$15
million.

It had previously announced that the impact of Cyclone Yasi and devastating
floods that swept through Queensland over Christmas and in early 2011 would
cost A$50 million.

Virgin Blue posted A$34.4 million pre-tax profit in 2009/2010 financial
year.

Borghetti said the current market conditions validated the airline's plan to
wean itself off the heavy reliance on the leisure market and look for a larger
share of corporate and business travellers.