The carrier on Monday (31 March) posted a pre-tax profit of £20 million off the back of a record £3.3 billion in revenue, up £183 million year-on-year in what was its 40th anniversary year.
Passenger capacity increased by 7.6% during 2024, a year in which Virgin flew 5.6 million passengers, although load factor came in at only just over three-quarters (77.3%).
However, Virgin nonetheless said this represented stronger utilisation of its fleet compared with pre-pandemic levels, with an average of 43 aircraft operating 24,832 sectors (flights) versus 45 aircraft flying 23,551 sectors in 2019.
In addition, Virgin completed 98.6% of all scheduled flights "despite operational challenges", which it said included reduced availability of Rolls Royce Trent 1,000 engines.
Virgin’s annual earnings before interest and tax (ebit) rose to their highest level ever last year (£230 million) – more than four times the £48 million in operating profit it delivered in 2023.
The carrier said the results reflected its efforts to pursue "sustainable profitability". It ended the year with £443 million in cash, more than 10 times the £37 million it had at the end of 2023. This figure also includes paying down £174 million in pandemic-related debt.
Since 2022, Virgin has paid down £500 million in debt accrued during the pandemic; it also completed £485 million in debt financing last year on improved terms.
Meanwhile, Virgin’s package holiday outfit – Virgin Atlantic Holidays – carried 255,000 passengers and delivered £517 million in revenue, up from £468 million in 2023.
July 2024 also saw Virgin Atlantic progress its fleet transformation plans with an order for seven Airbus A330-900 aircraft, which will increase its fleet of A330neo aircraft to 19.
By 2028, it anticipates having a fleet of 45 aircraft, which will also include 12 Airbus A350-1000s and 14 Boeing B787-9s. The average age of its aircraft will be 6.9 years.
Shai Weiss, Virgin Atlantic’s chief executive, hailed 2024 as a "big step forward" for the airline. "We returned to profitability for the first time since the pandemic, repaid a large chunk of debt and faced into operational challenges by taking decisive action," he said.
"2024 was a turning point for Virgin Atlantic and the culmination of our transformation. We have a plan in place for 2025, with much to look forward to including a new app, new routes to Toronto, Riyadh and Cancun, a new clubhouse in Los Angeles and greater stability for our operation."
