Virgin earnings downgrade

On Wednesday evening after the ASX had closed Virgin Australia announced an earnings downgrade expecting its full year result to be lower than last year although still positive.

The Virgin Australia share price fell eight cents to 38 cents on the news, wiping more than 17 per cent, or more than $200 million from its market capitalisation.

The price and capacity war being waged between Virgin and Qantas in the domestic market has been the catalyst for the downgrade and has also impacted the profit forecast of Qantas.

Read more on the news from Business Speculator writer Stephen Bartholomeusz HERE