Budget airline Virgin Blue says it cannot explain the recent crash in its share price, other than reasons such as market volatility and the global financial crisis.
Responding to a query from the Australian Securities Exchange (ASX), Virgin Blue said it had no reason to believe its operating profit for
the year to June 30 would vary by more than 15 per cent from earlier guidance.
Australia's second biggest carrier also said it had no reason to think that any material abnormal or extraordinary profit would be recorded, other than as previously disclosed.
Virgin Blue said apart from the current market volatility it was not aware of any reasons that would explain the fall in its share price.
"The company is not aware of any other explanation for the price change and increase in volume in the securities, other than the current market volatility and economic uncertainty," it said in a statement on Friday.
"There is no reason to think that there may be a change in the operating profit so that the figure would vary from previous guidance by more than 15 per cent."
The ASX questioned Virgin Blue's share price drop from 28 cents on 25 February to a low of 15 cents on March 12.
- AAP is seeking further comment from Virgin Blue.
At 1105 AEDT its shares were up 1.5 cents, or 9.09 per cent, to 18 cents, as the broader market powered ahead.
- AAP
