VIRGIN Atlantic has announced a £100-million ($165-million) investment in product development as it reported a strong year of trading and a return to profit. Despite the winter closure of London Heathrow and the ash cloud crisis costing the business a combined £40 million ($66 million), strong growth in business traffic and solid load factors across all cabins delivered a good recovery. On the airline’s route to Dubai, revenues have increased by a positive 12 per cent year-on-year with an increase in passenger demand, particularly from the UAE market itself. Brad West, regional manager for the UAE said: 'Virgin Atlantic in the UAE has made a positive contribution to the overall 2010/11 results. Last year sales in the Middle East grew significantly and this growth is set to continue this year. 'Encouragingly we’re seeing a steady increase in demand for our Upper Class and premium economy cabins underlying a strong recovery in Dubai’s financial markets. Overall demand to London is as strong as ever with the UK offering some of the very best shopping, dining and entertainment in Europe. 'In March this year we celebrated our fifth anniversary of flying to Dubai and the route continues to be very important to us.' In the full year 2010/2011 pre-tax operating profit was £18.5 million ($30.5 million), revenues increased by 13 per cent to £2.7 billion ($4.45 billion), cargo revenue was up 39 per cent to £224m ($369 million), the load factor was 82 per cent and the new London to Accra route was launched And in the first quarter of the current year, March to May, total revenues were up 7.6 per cent to £658 million ($1.08 billion), two new Airbus A330s were introduced and a new route was launched from Manchester to Las Vegas. Chief executive Steve Ridgway said: 'While we have been very focused on trading the airline back to profitability, we have worked hard to introduce new aircraft, new routes and extra rotations to the existing network where there has been high demand. This year we are investing heavily in new product innovation so that we retain and enhance our leadership in customer service and experience. 'Since the turn of the year, market conditions have become tougher with increased capacity, faltering consumer confidence and high fuel prices. We are also seeing softer trading in the areas that are hit hardest by the continued rises in Air Passenger Duty, particularly the Caribbean routes and premium economy cabins. While business traffic remains strong, demand in the economy cabin is more challenged.' This year, Virgin Atlantic will be reviewing and updating many aspects of its product offer both in the air and on the ground. The £100 million investment, the arrival of new Airbus A330 aircraft and additional services to the Caribbean and Ghana will create 1,000 jobs across the airline including major recruitment drives for cabin crew and pilots.
