Virgin Blue Holdings Ltd (ASX:VBA) is expecting its 2011 financial year profit to fall to a net loss of between $30 million to $80 million.

The forecast figures is well under the $21.3 million net profit Australia's second biggest carrier booked in the 2010 financial year.

CEO and managing director John Borghetti said an unprecedented number of significant events, such as natural disasters and a sharp spike in fuel prices, have severely impacted consumer confidence.

"We have witnessed an unprecedented number of significant events in an extraordinarily short period of time, including natural disasters and a sharp spike in fuel prices,"Mr Borghetti said in a statement.

"These events have severely impacted consumer confidence, resulting in a slower than usual recovery in tourism," he said.

Last month the airline announced its first half net profit had fallen 62 per cent.

The airline said at the time fuel prices were the highest since 2008 and having since risen further, added an extra $50m to its second-half fuel costs. The Christchurch earthquake is expected to have a $15m impact, while the Queensland floods and Cyclone Yasi are likely to cost $50 million.

In the first half of the 2011 financial year, Virgin Blue’s net profit dropped to $23.8 million.

Mr Borghetti said the market conditions validated the airline's plan to look for a larger share of corporate and business travellers.

"We are more confident than ever that our strategy is the right one," he said.

In early trade, Virgin Blue shares lost 2.5 cents, or 7.58 per cent, at 30.5c, the lowest since August 26, 2010.

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