Like buses, results are coming out. This time it’s Virgin Atlantic who has made a lost of £80m in the 12 months to the end of February,
This compared to the same period in 2010-211 where a profit was achieved of of £18.5m, with revenue and passengers up on last year. The load factor has been 78% over the year.
However, losses have been pinned on the fuel bill which has risen by one third.
Virgin Atlantic’s Chief Executive Steve Ridgway says:
“In an incredibly challenging market, we have managed to grow top line revenues and fly more customers than last year.
“However, with the prevailing uncertainty in the economy, sky high fuel prices and a 25% hike in our air passenger duty fees, converting this sales growth into profit has not been possible.”
Virgin Atlantic has been busy, upgrading its Clubhouse lounges, Upper Class services, and introducing a 3-class A330 aircraft. However, to stem fuel costs, Virgin Atlantic will need to cull its Airbus A340 fleet and swap it out for Boeing 787’s and Airbus A330’s.
“4 Engines 4 Long Haul” whilst a lovely slogan in the past seems to be a very expensive option now with the cost of fuel…