Virgin Atlantic forecasts first post-pandemic profit in 2024
Virgin Atlantic anticipates a return to profit for the first time since the pandemic this year amid booming demand for leisure travel.
The carrier, which is backed by Richard Branson’s Virgin Group and Delta Airlines, reported a record £3.1bn revenue in 2023, a £265m increase year over year.
Pre-tax losses narrowed to £139m in 2023, down from £206m the prior year, while earnings before interest and taxes (EBIT) surpassed pre-pandemic levels at £80m.
Chief executive Shai Weiss flagged “continued strong demand… which shows that desire for experiences and travel remains.”
“A loss is never satisfactory, however, our performance and results illustrate that we have made really good progress in 2023. The plan is working,and Virgin Atlantic is on course to return to profitability.”
Pent-up desire for travel, following years of Covid-era lockdown restrictions, boosted many airlines’ profit to record levels last year.
British Airways owner IAG reported record earnings and £2.8bn in operating profit.
Virgin Atlantic said it carried 5.3m passengers over the course of the year, at a load factor of 77 per cent. Revenue from passengers came in at a record £2.4bn, despite a slowdown in corporate travel demand.
It marks a stark shift from the days of Covid-19, when the company was forced to agree a £1.2bn rescue deal to secure its future after being denied government support.
Virgin Atlantic ended the year with a cash position of £406m, after it refinanced £41m and payed down around £98m in debt.
On the back of the performance, the firm is launching a second route from London Heathrow to Mumbai. It expects to offer more than one million seats to India from 2025, a 350 per cent capacity increase.