Virgin chief reveals airline's back in the red, vow blow-outs won't grow John Borghetti, CEO of Virgin Australia speaking at a luncheon at the Crown Casino. VIRGIN Australia chief John Borghetti has vowed that restructuring costs will blow out no further after revealing the airline has tumbled back into the red. Mr Borghetti says the latest restructuring costs disclosed by the airline - which have dragged it to a deep full-year loss - will be the "last." Virgin now expects to post a full-year net loss of $95 million to $110 million for the financial year that finished in June. It has blamed the extensive restructuring costs, along with the carbon tax and a difficult trading environment. The previous year, Virgin chalked up a net profit of $22.8 million. Mr Borghetti said restructuring and transformation costs were expected to be about $100 million. The costs cover the rollout of a new booking system and expenses linked to Virgin's takeover of Skywest Airlines and Tiger Airways Australia. When posting its first-half results in February, Virgin said it had forked out $36 million in transformation costs. Mr Borghetti yesterday defended Virgin's investments. He said the financial impact had now been absorbed and the acquisitions had given the group a "foothold in every market." "These are the last of our transformation costs," Mr Borghetti said. He also attacked the carbon tax, which he said had cost the airline $45 million to $50 million for the year. Virgin Australia was disproportionately affected by the domestic tax because it generated 80 per cent of its revenue within Australia, he said. Strategic Airlines Solutions consultancy group chairman Neil Hansford said investors would be hoping for an end to one-off transformation costs when half-year results were announced in six months. "The company can't keep bringing up reorganisation costs," Mr Hansford said. Virgin says it will increase fares and international fuel surcharges as a result of higher fuel costs and the falling Australian dollar. Virgin Australia shares closed down 4.4 per cent at 43.5c.