Virgin Atlantic earnings boost from new destinations

Virgin Atlantic Airways has reported pre-tax profits for the first quarter of its financial year, due to the addition of new destinations as well as gaining new passengers from British Airways.

The UK-based carrier’s pre-tax profit for the three-month period ended 31 May 31 amounted to 23.5 million pounds, as compared with a loss of approximately two million pounds during the same period last year, said Paul Charles, a spokesman for the airline. Overall sales showed an increase of 16 per cent, reaching 645.3 million pounds.

Virgin Atlantic, in which Singapore Airways has an ownership stake of 49 per cent, saw a boost in passenger numbers in March when British Airways was forced to cancel more than 600 of its flights during the chaotic opening of Heathrow’s Terminal 5.

The new destinations served by Virgin Atlantic, which have also contributed to its rise in profits, include Chicago, in the US and Nairobi, in Kenya.

The carrier’s CEO, Steve Ridgway, noted that the outlook for the aviation industry “remains pretty overcast.” He added: “Against the backdrop of high oil prices and weakening consumer demand, we are well-placed to succeed over the coming months.”

Virgin Atlantic’s net income for the 12 month period ended 29 February showed a significant rise to 47.7 million pounds, from 6.6 million pounds just one year earlier, the airline said.

www.virgin-atlantic.com