Virgin Atlantic posts £80m loss
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Virgin Atlantic has posted a pre-tax group operating loss of £80.2 million (US$125m) in its annual results ending 29 February.
The airline blamed the economy, high fuel prices and the increase in APD on the result, which saw passenger numbers increase 2% to 5.4 million and load factor at 78%. It now expects passenger numbers to increase to 1.3 million in Q1 (up 2.3%), with revenue up 5.8% to £481.9 million.
The carrier has already launched new flights to Cancun, Mumbai and Vancouver this year, as well as a sixth daily service between Heathrow and JFK and six Airbus A330s to be delivered this year.
“We have had an encouraging start to the year, continuing to grow our passenger numbers and our revenue. Our new route launches to Vancouver and Cancun will strengthen our position as the number one UK long haul leisure airline,” said Steve Ridgway, chief executive of Virgin Atlantic. “The Mumbai route will prove very important in connecting business traffic from East to West via London and enabling the UK to better connect with one of the world’s most vibrant economies.”
The carrier has also completed its premium product investment, which included a new upper class cabin and Clubhouses.