VIRGIN Atlantic Airways reported an increase in revenues, passenger numbers and cargo sales despite a challenging year of trading. In its annual accounts for year ending February 29, 2012 the long haul airline saw revenues increased by three per cent to £2.74 billion ($4.29 billion) while airline passenger numbers increased by two per cent to 5.4 million, with a load factor of 78 per cent.
Virgin Atlantic chief executive, Steve Ridgway said: “In an incredibly challenging market, we have managed to grow top line revenues and fly more customers than last year. However, with the prevailing uncertainty in the economy, sky high fuel prices and a 25 per cent hike in our air passenger duty fees, converting this sales growth into profit has not been possible.
“Despite this backdrop there can be no let up so to keep Virgin Atlantic at the forefront of airline customer innovation we have announced our biggest ever service and cabin investment programme.”
Virgin Atlantic’s £100 million ($156 milllion) Upper Class product investment launched in February 2012 included a new Upper Class cabin including new seat and bar, new Upper Class menu and service, new Clubhouse opened in New York JFK and new Clubhouse in New York, Newark set to open in November 2012.
Its outlook for the first quarter remains high with load factor of 77 per cent, airline revenues up 5.8 per cent to £481.9 million ($ 754 million) and passenger numbers up 2.3 per cent to 1.3 million.
Brad West, country manager UAE added: “We have had an encouraging start to the year, continuing to grow our passenger numbers and our revenue. Our new route launches to Vancouver and Cancun will strengthen our position as the number one UK long haul leisure airline. The Mumbai route will prove very important in connecting business traffic from East to West via London and enabling the UK to better connect with one of the world’s most vibrant economies.
“The introduction of the A330 aircraft will further enhance what is already one of the youngest fleets in the world and each plane will use 15 per cent less fuel per seat. These aircraft will add significant additional cost savings to our operating efficiencies programme, helping us to combat the economic headwinds that are currently prevailing.”