Virgin Atlantic reports sharp rise in annual profits

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In a major departure from the experience of other airlines around the world, Virgin Atlantic has reported a substantial increase in full-year profits for its financial year ended 28 February.

Pre-tax profits reached £68.4 million, which is nearly double the £34.8 million posted for the previous year.

The carrier said that its performance was given a boost by an increased number of premium-class passengers.

Other major UK-based airlines, including British Airways, have been reporting annual losses. Last week BA revealed an annual pre-tax loss of £401 million.

In BA’s report it noted that premium-class travel had dropped by 13 per cent during the last six months of its financial year, and that, combined with increased fuel costs, contributed substantially to the loss.

Steve Ridgway, the chief executive of Virgin Atlantic, said: “We are winning market share from our competitors during the toughest trading environment ever.”

Ridgeway, in a BBC interview, added that successful fuel hedging had helped the airline’s financial performance, as they had bought before prices surged.

Ridgway warned, however: “This year is going to be tough,” adding that the airline would “cut costs as aggressively as possible.”

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