We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message
RSS FeedFinancial Planning

Virgin Atlantic posts full-year loss


Richard Branson's airline blamed the loss on economic conditions and higher fuel costs

Article comments

Virgin Atlantic on Friday reported a full-year, pre-tax operating loss of £80.2 million due to escalating fuel costs and a worsening economic outlook, the airline said.

This year’s loss at Richard Branson’s airline compares to a profit of £18.5 million in 2010/11.

The airline, part owned by Singapore Airlines, said revenues grew 3 percent to £2.74 billion though fuel costs rose a third.

Virgin's passenger numbers rose 2 percent to 5.4 million during the year and its load factor - a measure of how full its planes were - came in at 78 percent.

"In an incredibly challenging market, we have managed to grow top line revenues and fly more customers than last year," the airline's chief executive Steve Ridgway said.

"However, with the prevailing uncertainty in the economy, sky high fuel prices and a 25 percent hike in our air passenger duty fees, converting this sales growth into profit has not been possible."

The airline, which is due to take delivery of six new Airbus A330 planes in the coming months, said it had made an encouraging start to its new financial year.

Rival British Airways, part of the IAG group, posted an operating profit of €13 million euros in the six months to the end of June.

READ ALSO:

Aer Lingus CFO Andrew Macfarlane interview

Travel: How can finance chiefs justify it?

Share:

Recommended Articles

Comments

Virgin Atlantic posts full-year loss
Financial Planning

Can finance rise to the challenge of major transformation?

Can finance rise to the challenge of major transformation?

Outdated finance processes, systems and competencies leave too many questions unansweredmore ..


Apple posts 5% rise in revenues to $37.4bn

CFO Luca Maestri said Apple had beaten the PC industry average in 32 of the last 33 quartersmore ..

Microsoft posts 18% revenue rise thanks to cloud

Profits for the quarter were down, howevermore ..

Public sector borrowing higher than expected in June at £11.4bn

public sector net debt equalled 77.3 percent of GDP, the ONS said.more ..

Budget: What business wants

CFOs are keen for the chancellor to avoid any uncertaintymore ..

Stay ahead of the curve

CFOs used to low interest rates ignore working capital optimisation at their perilmore ..

Send to a friend

Email this article to a friend or colleague:


PLEASE NOTE: Your name is used only to let the recipient know who sent the story, and in case of transmission error. Both your name and the recipient's name and address will not be used for any other purpose.



In Depth
Can finance rise to the challenge of major transformation?

Can finance rise to the challenge of major transformation?

Outdated finance processes, systems and competencies leave too many questions unanswered more ..

In Depth
Interim CFO or consultant? The pros and cons

Interim CFO or consultant? The pros and cons

Ed Harding offers an insight into the life of an interim CFO and the advantages in driving transformation more ..

Advertisement

* *