Virgin Atlantic set for further £160m cash boost

A spokesperson for the carrier confirmed it was in the process of finalising a new £160 million refinancing package, the BBC reports.

Confirmation followed other national press reports stating the airline was seeking additional cash to support the business while Brits remain unable to travel.

The money will comprise loans from existing shareholders, including Richard Branson’s Virgin Group and US carrier Delta Air Lines.

“We continue to bolster our balance sheet in anticipation of the lifting of international travel restrictions during the second quarter of 2021,” said a Virgin spokesperson.

“This latest £160 million financing provides further resilience against a slower revenue recovery in 2021 and follows a $230 million (£165 million) financing on two Boeing 787s in January, which allowed us to pay down debt and strengthen our cash position.

“We remain confident Virgin Atlantic will emerge a sustainably profitable airline and would like to thank our creditors and shareholders, Virgin Group and Delta, for their ongoing support and unwavering belief in our future.”