Carrier cites rise in premium traffic
Virgin Atlantic today (May 26) reported a sharp increase in its pre-tax profits from £34.8m in 2007-2008 to £68.4m in the last financial year.
In the 12 months to the end of February this year, the carrier said sales were up 8.4% to £2,579m and a passenger numbers rose to 5.77m.
Virgin cited an increase in premium passengers and "prudent management decisions" on oil price hedging in a year when prices fluctuated form $140 per barrel to $38.
It described the current climate as the "most volatile trading conditions in the airline's 25-year history."
Sir Richard Branson, Virgin Atlantic's president, said: "The last financial year has proven to be the most volatile yet in our 25-year history.
"To increase profits against a backdrop of such a severe recession is an excellent achievement by all of our staff at Virgin Atlantic."
Steve Ridgway, its ceo, said: "We are winning market share from our competitors during the toughest trading environment ever.
"With some of the lowest fares ever, consumers have never had it so good for so long. Our load factors remain resilient as travellers take advantage of these bargain fares, proving the value of vigorous competition."
In a radio interview in the UK, Mr Ridgway said that premium traffic had held up until November but had dropped in the last two to three months.
The Virgin results come just a few days after BA announced a pre-tax loss of £401m for its last financial year.
During the year until March 31, the carrier said its premium traffic had fallen by 13%.
Air France KLM also reported an €814m loss last week.
www.virginatlantic.com [1] www.ba.com [2] www.airfrance.com [3]