Virgin Atlantic posts impressive profits

Despite the fact that this is one of the most challenging times that the commercial aviation industry has ever seen, Virgin Atlantic has managed to perform exceptionally well so far this year and announced impressive profits earlier today. The London-based carrier’s profits now stand at £60.9 million, which represents a major jump from last year’s figure of £44 million. In order to celebrate this good news, Virgin Atlantic’s employees will soon get a piece of the pie. The Scotsman newspaper reported that the long-haul carrier’s staff will enjoy a bonus in the form of a one-time pay-out. The Scotsman noted that 8,000 employees can expect to receive a bonus and that it would amount to approximately one and a half weeks of their regular salary.

When asked about how Virgin Atlantic could be doing so well when fuel remains expensive and when the economy is weak in both the United Kingdom and the United States, Virgin executives noted that a noticeable rise in the number of business class passengers may account for these good fortunes. Those travelling in premium cabins are usually the most lucrative passengers for any airline. Many of these passengers have previously flown with British Airways, Virgin’s main rival at Heathrow Airport, but earlier this year a significant number of these premium class fliers decided to swap Britain’s flag carrier for Virgin, in order to avoid the hassle of delays and lost luggage that characterized the opening of Terminal 5. In fact, premium passenger traffic is said to have increased by a stunning 22 percent, compared to figures from last year.

Virgin Atlantic’s founder, Sir Richard Branson, retains a controlling 51 percent stake in the carrier, but the remainder of shares are held by Singapore Airlines.