Virgin Blue - Premium economy has not been enough to save the share price

Bad day in the office in Fortitude Valley for Australia's number two carrier - Virgin Blue. Despite efforts to reinvent the brand with premium economy, lounges and more the share price for DJ (their airline code) is at its lowest level ever at 87 cents on the back of dropping profits (SMH story here). To put this in perspective, DJ floated at $2.25 in December 2003 to a valuation of A$2.3billion. In early 07 it reached a high near the $2.80 mark.

If the comments from the DJ management are right, this is not all their fault. Rather (they argue) the sector (ie domestic travel) is softening on the back of global and local economic concerns. Either way am sure it was not pleasant day in Queensland.