Virgin Atlantic Returns to Profitability with Record Revenues in 2024

dailyblitz.de 1 день назад

LONDON- Virgin Atlantic (VS) has reported a return to profitability for the first time since the pandemic, posting a Profit Before Tax and Exceptional Items of £20 million in its 2024 financial results.

The airline achieved record revenues of £3.3 billion, representing an increase of £183 million compared to 2023. Virgin Atlantic (VS) achieved its highest-ever Earnings Before Interest and Tax (EBIT) of £230 million, more than quadrupling the £48 million delivered in 2023.

Virgin Atlantic Growth

The airline experienced a 7.6% growth in passenger capacity while meeting strong demand for business and premium leisure travel.

Virgin Atlantic carried 5.6 million passengers in 2024, maintaining a load factor of 77.3%. The airline operated 24,832 sectors on an average of 43 aircraft, compared to 23,551 sectors on 45 aircraft in 2019, demonstrating improved fleet utilization.

Despite operational challenges due to the reduced availability of Rolls Royce Trent 1000 engines, the airline achieved a flight completion factor of 98.6% and earned recognition as the “most punctual airline in the UK”.

Financial Position

The airline ended 2024 with a cash position of £443 million, up £37 million from 2023, after paying down £174 million of pandemic-related debt.

Since 2022, Virgin Atlantic has reduced pandemic debt by £500 million and completed £485 million of debt financing on improved terms during 2024.

Virgin Atlantic Holidays met the demand for premium sun destinations, carrying 255,000 holidaymakers and delivering £517 million in revenue, up from £468 million in 2023.

Virgin Atlantic Cargo ended the year with the number one market share position out of the UK, operating 199 million tonnes of cargo and generating revenue of £236 million. This exceeded the 2023 revenue of £196 million by capitalizing on continued disruption to Red Sea freight and increased capacity from India.

Fleet and Service Enhancements

In July 2024, Virgin Atlantic (VS) completed its fleet transformation by confirming an order for seven Airbus A330-900s, bringing its A330neo fleet to 19. By 2028, its fleet will comprise 45 next-generation aircraft with an average age of 6.9 years.

In October, the airline’s Flying Club launched Unlimited Availability, becoming the first UK loyalty program allowing members to pay for any seat with Virgin Points. The airline also launched a reimagined website that unifies Flights and Holidays in one place for the first time.

Leadership Perspectives

“Our performance in 2024 marked a big step forward in our mission to become the most loved travel company and sustainably profitable, with record revenues and operating profit achieved in our fortieth year. We returned to profitability for the first time since the pandemic, repaid a large chunk of debt and faced into operational challenges by taking decisive action.”

Shai Weiss, CEO, Virgin Atlantic

“2024 financial results reflect a second consecutive year of our teams delivering record revenues coupled with sustained cost discipline. Reporting a record Earnings Before Tax and Interest (EBIT) performance and return to profitability in our fortieth year is a testament to the enduring commitment of Virgin Atlantic’s people.”

Oli Byers, CFO, Virgin Atlantic

Looking Ahead to 2025

The airline has outlined plans for continued growth in 2025, including a new app, new routes to Toronto (YYZ), Riyadh (RUH), and Cancun (CUN), a new clubhouse in Los Angeles, and greater operational stability.

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Virgin Atlantic Inaugurates New Flights to Toronto and Riyadh with A330s

The post Virgin Atlantic Returns to Profitability with Record Revenues in 2024 appeared first on Aviation A2Z.

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