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Sunday, August 5, 2012

Virgin Atlantic Group slips to £80.2 million FY2011-12 operating loss

The UK’s Virgin Atlantic Group, which includes Virgin Atlantic Airways (VS), recorded an operating loss of £80.2 million ($120.3 million) for the 2011-12 financial year, compared to an £18.5 million operating profit for the preceding year (ATW Daily News, Aug. 12, 2011).

Revenues increased 3% to £2.74 billion at the Group, which traditionally does not separate out figures for the airline and releases limited financial information.

Load factor was down around 2% at 78%, due to a 6% increase in capacity, according to a spokesperson. Cargo revenue was up 7% at £239.6 million.

“In an incredibly challenging market, we have managed to grow top line revenues and fly more customers than last year,” VS chief executive Steve Ridgway said. “However, with the prevailing uncertainty in the economy, sky-high fuel prices and a 25% hike in our air passenger duty fees, converting this sales growth into profit has not been possible.”

A renewed cost-reduction drive is underway, which aims to reduce operating costs by £50 million in the current year.

“We have had an encouraging start to the year, continuing to grow our passenger numbers and our revenue,” Ridgway said.

source: atwonline.com

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