Virgin Atlantic report profits
10.08.11
Virgin Atlantic has announced a strong year of trading and a return to profits. However, it warned that market conditions had become tougher in recent months due to higher fuel prices, weakening consumer confidence and the affect of UK aviation taxes.
The airline's full-year pre-tax profit was £18.5 million, compared to a loss of £132 million a year ago, with its revenues up 13% to £2.7 billion and an average load factor of 82%. The figures come despite the pre-Christmas closure of Heathrow and the ash cloud crisis, which cost the airline a combined £40 million.
The airline said strong growth in business traffic and solid load factors across all cabins caused the recovery. The performance of its tour operator business, Virgin Holidays, was also boosted by high demand for its core Orlando and Caribbean holidays.
Chief executive Steve Ridgway said: ‘We have weathered the toughest economic period for aviation and have now returned the business to profit. A sharp recovery in the first half of the year has been tempered by more challenged trading in the latter period due to increased capacity in the market and high fuel prices.'
‘We are also seeing softer trading in the areas that are hit hardest by the continued rises in Air Passenger Duty, particularly the Caribbean routes and Premium Economy cabins. Whilst business traffic remains strong, demand in the economy cabin is more challenged.’
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