Virgin Atlantic to raise £400m to survive the winter
UK carrier Virgin Atlantic is in talks with its shareholders regarding the possibility to raise a further £400m to help the airline face winter months.
Sources said that, while the amount was still being finalised and will be announced by the end of the year, it is expected that Virgin Atlantic’s owner Sir Richard Branson will need tap into his fortune to help the carrier, Sky News reported.
In 2020 Virgin Atlantic lost more than £650m as a result of Covid-19 with forecasts predicting further losses in the final results for this year, leading to Branson’s original floating plans to be shelved indefinitely.
The expected £400m is not the first time Virgin Atlantic has raised funds from the beginning of the pandemic. The most notable time was when the carrier was bailed out in September 2020 by a £1.2bn solvent rescue package. Sir Richard contributed with £200m, while US hedge fund Davidson Kempner Capital Management and creditors offered substantial contributions.