UBS remains "neutral" on Virgin Australia with a price target at 50&cent; a share.
"During the   September quarter, we estimate total domestic market capacity growth remained relatively constrained at 1 per cent however industry loads remained flat indicating that demand continues to remain soft.
"Our forecasts imply an outcome where industry load factors gradually improve to 78 per cent by FY17 with the domestic EBIT pool increasing to $1.3 billion.
"These forecasts are based on unit revenue retracing its 7 per cent decline to return to roughly FY12 levels in FY17."