Hello! You are viewing your 1 free guest article this week


Please log in or join now for free, immediate and unlimited access to our award-winning online content. Find out more...

Join us
Already a member? Log in here

Travel industry news

10 Apr 2019

BY Rob Gill

Share
TRFBLI

Virgin Atlantic cuts annual loss as revenue rises

Virgin Atlantic continued to make a loss in 2018 as the company faced a “challenging economic backdrop” in the UK.

Virgin Atlantic
Sharelines

Virgin Atlantic cuts annual loss as revenue rises

The company, which also owns Virgin Holidays, made a pre-tax loss of £26.1 million, excluding tax and exceptional items in 2018. This was an improvement on the £49 million loss Virgin Atlantic made in 2017.

More positively, Virgin Atlantic increased revenue by £153 million or 5.8% to £2.8 billion during the year, with passenger numbers also rising by 4.8% to reach 5.4 million.


The airline emphasised a 1.7% year-on-year increase in its passenger unit revenue – the first time this key metric has risen since 2014.

 

Virgin added it was now “in a strong position to realise its plan to revive growth and return to profitability”.


Shai Weiss, Virgin Atlantic chief executive, said: “While a loss is disappointing, our performance has improved in 2018 despite challenging economic conditions and put us on a trajectory for growth and return to profitability.

 

“We continued to invest in a host of new initiatives to delight our customers, including greater choice by successfully launching three new ways to fly economy.

 

"Operationally, we achieved our best arrival performance since 1997.”

 

Weiss added it was “time to build on these foundations” with several “transformative projects” taking place at the airline in 2019.

 

These include taking delivery of its first Airbus A350-1000 aircraft featuring new cabins, including a new Upper Class suite. Flights are also being launched to Tel Aviv and Sao Paulo.

 

The company, which is 49% owned by Delta, is also part of the consortium to acquire regional airline Flybe, which will eventually be rebranded as Virgin Atlantic.

 

Virgin Holidays made a pre-tax profit of £6 million last year but this was down on its 2017 results when it made a profit of £15.5 million due to “softer consumer demand” caused by “economic uncertainty” and the weakness of the pound against the US dollar.

 

Online bookings of Virgin Holidays’ Flight+Hotel packages with the airline increased by 250% year-on-year, while 22 new retail concessions were opened in Next stores.

What’s your view? Email feedback@ttgmedia.com and let us know your thoughts or leave a comment below.

Little Black Book: Virgin Atlantic Flightstore

Find contacts in TTG's Little Black Book

Virgin Atlantic Flightstore

We currently work with over 1,000 Tour Operators and Travel Agents in the United Kingdom, and our Price Match Guarantee means we offer them the very best Virgin Atlantic fares available in the market.

Add New Comment
Please sign in to comment.
Show me more

Follow Us



Twitter
LinkedIn
Facebook
Instagram
YouTube
Soundcloud
TTG Media Limited.
Place of registration: England and Wales.
Company number 08723341.
Registered address: New Bridge Street House, 30-34 New Bridge Street, London EC4V 6BJ
Scroll To Top