Virgin Atlantic returns to profit after successful turnaround

Virgin Atlantic returns to profit after successful turnaround

Virgin Atlantic has published annual financial results, confirming the successful delivery of its two year recovery plan and a return to profit.

For the year ended December 31st, the group reported a profit before tax and exceptional items of £14.4 million, representing an improvement of £65.4 million on the previous year’s financial performance.

The results confirm that Virgin Atlantic has delivered on the target it set in February 2013 to return to profit within two years.

It is now looking to the future and positioning the business for future growth and sustained profitability whilst making significant investment in customer experience.

The profit was made on group revenue of £2.9 billion, with 6,156,000 passengers flown over the year.

Virgin Holidays recorded a profit for the year before tax and exceptional items of £5.7 million, up £3 million year on year, and increased revenue by 1.1 per cent.

Virgin Atlantic chief executive Craig Kreeger said: “We want to be the airline most loved by our customers by always putting them at the centre of everything we do.

“These profitable results mark the successful conclusion of our recovery period and have put firm foundations in place for the future.

“We are confident that we have the right fleet, network and partners in place to be more profitable than ever before by 2018.”
Strategic changes in the business along with operational and cost efficiencies have driven the improved financial performance this year.

In October, the airline took delivery of the first of its state of the art, fuel-efficient Boeing 787-9s, with seven more to follow in 2015 as part of a fleet regeneration programme.

Virgin Atlantic and its customers gained significant benefit from its joint venture partnership with Delta Air Lines, launched in January 2014.

Over 4.5million passengers flew on joint venture services in its first year of operation and the two airlines expect this number to continue to grow in 2015.

The partnership’s total number of code share routes recently increased to 484 and its peak daily transatlantic services will rise to 39 from summer 2015.

Virgin Atlantic president, Richard Branson, said: “I can’t think of a better way to complete our 30th birthday year than with a return to profit.

“The team at Virgin Atlantic has done a great job in turning around the airline and has the right strategy to take the business from strength to strength. 

“Keeping our customers and our people at the heart of everything we do gives me great confidence in our future and I look forward to the next 30 years.”