Virgin Atlantic Holidays makes first profit since 2018 as luxury travel to Florida and the Caribbean recovers
Virgin Atlantic Holidays returned to making a profit for the first time since 2018.
The company has posted a pre-tax profit of £31.8m for 2023 after making a loss of £2.1m in 2022.
It is the first pre-tax profit Virgin Atlantic Holidays has made since the £21.7m it reported in 2018.
According to newly-filed accounts with Companies House, the business also posted a revenue of £470.9m, down from £487.1m.
The travel company was founded a year after Virgin Atlantic and offers holidays worldwide with destinations including the US and Canada, the Caribbean, Africa, the Middle East, the Indian Ocean and the Far East.
The company sits within Virgin Atlantic and is, therefore, 51 per cent owned by Virgin Group and 49 per cent by Delta Air Lines.
‘Strong recovery’ but uncertainty remains for Virgin Atlantic Holidays
A statement signed off by the board said: “A strong recovery in demand for holidays followed an extensive period of uncertainty which impacted the longer booking curves typically seen before the pandemic.
“Revenue reached 75 per vent of 2019 at £471m as the demand for premium leisure travel remained strong.
“Overall, capacity is lower to our fortress market of Florida and some of our Caribbean destinations, reflecting network and aircraft changes.
“This has meant the return to pre-Covid revenues is slower than in the airline.”
On its future, Virgin Atlantic Holidays added: “Demand for travel has remained strong through the first quarter of 2024, including record daily bookings in the winter sale and we anticipate seeing a nine per cent increase in passengers from 2023.
“2024 will bring further focus on our core Florida and Caribbean destinations as we continue to grow capacity in these markets, as well as new destinations now served by Virgin Atlantic including the Maldives and Dubai.
“We remain confident our plan is working and are resolutely focused on managing our costs and liquidity, on serving our customers and our people, on fulfilling our vision of becoming the most loved travel company as well as sustainably profitable.”
How has Virgin Atlantic performed?
The accounts come after Virgin Atlantic revealed its revenue had increased from £2.8bn to £31bn in 2023 while its pre-tax losses were cut from £341.6m to £224.6m.
In a statement released at the start of April, the airline said that it anticipates a return to profit for the first time since the pandemic this year.
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.”