The airline industry has been off to a rough start for the first quarter of the year. With Qantas recently announcing their plans to axe 5000 jobs in a two year period, Virgin Australia followed with more bad news, declaring an $83.7 million loss – the first time in 20 years that the Australian airline industry has declared a loss for the first half.

This is another blow for Virgin Australia, after declaring that it will cease the operations of their Hong Kong flights to Australia the past several weeks. Virgin chief executive John Borghetti has cited weak economic conditions as the main factor, as well as the cost of the carbon tax. He remains confident that the company has strategies in place to surpass these issues.

Read more about this on the Sydney Morning Herald website.