March 13, 2020 / 1:47 AM / 3 months ago

BRIEF-Virgin Australia Suspends Earnings Guidance Due to COVID-19

March 13 (Reuters) - Virgin Australia Holdings Ltd:

* ASX ALERT-VA GROUP UPDATE ON COVID-19 RESPONSE-VAH.AX

* GROUP CAPACITY REDUCTION TO INCREASE FROM 3 PER CENT TO 6 PER CENT IN 2H20 AND INCREASE TO 7.7 PER CENT IN 1H21

* EARNING GUIDANCE SUSPENDED DUE TO UNCERTAINTY AND EVOLVING NATURE OF COVID-19 SITUATION

* TEMPORARY REDUCTION IN CHAIRMAN AND INDEPENDENT BOARD DIRECTOR FEES BY 15 PER CENT

* 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

* REDUCING DAILY BRISBANE TO HANEDA SERVICE TO THREE TIMES PER WEEK FROM 29 MARCH UNTIL 3 MAY

* REDUCING DAILY SYDNEY TO LOS ANGELES SERVICE TO FIVE TIMES PER WEEK FROM EARLY MAY TO EARLY JUNE.

* REDUCING LOS ANGELES, JAPAN, AND TRANS-TASMAN SERVICES AND EXIT OF AUCKLAND SERVICES BETWEEN TONGA AND RAROTONGA

* FREEZING ALL EXTERNAL RECRUITMENT AND USE OF CONSULTANTS FOR REMAINDER OF FY20

* FURTHER REDUCING TRANS-TASMAN SERVICES FROM A 2.6 PER CENT REDUCTION TO 6 PER CENT FOR 2H20,

* A FREEZE ON ALL EXTERNAL RECRUITMENT AND USE OF CONSULTANTS FOR REMAINDER OF FY20

* COST REDUCTION MEASURES INCLUDE REMOVAL OF MANAGEMENT BONUSES, NO BASE SALARY INCREASES FOR NON-EA TEAM MEMBERS, LEAVE INITIATIVES

* REDUCING ALL BONUSES TO ZERO ACROSS GROUP FOR FY20 Source text for Eikon: Further company coverage:

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