Sky News claims the carrier, which is 51% owned by Sir Richard Branson and 49% by Delta, had appointed advisers Citi and Barclays to oversee the listing.
Virgin declined to comment on speculation.
If it proceeds, the flotation will allow the carrier to raise additional capital, and investors are likely to be attracted to it because of the airline’s valuable Heathrow slots. A flotation may also see Branson’s personal stake diluted.
The airline may welcome a cash injection that a flotation would bring. The carrier reported a £659 million loss in April and has cut staff numbers and retired older aircraft to stem losses.
