Virgin Atlantic profits increase on premium class service

Virgin Atlantic has reported an increase in profits for its 2007-2008 financial year that it has largely attributed to a growth in the sale of business class seats.

The carrier’s premium passenger numbers increased by approximately 22 per cent over the previous year, even as it competed for a share of this market with BA and other major airlines.

In all, Virgin Atlantic’s passenger numbers for the year totalled 5.7 million, which was an increase of 7.6 per cent over the preceding year.

The rise in passenger numbers was also partly due to the addition of several new routes from its Heathrow base, to destinations such as Chicago, Mauritius and Nairobi, as well as the introduction of a new service from London Gatwick to Kingston.

Virgin Atlantic’s president, Sir Richard Branson, commented on the airline’s financial results and took the opportunity to support the break-up of the airports operator BAA and to speak out against the potential merger of American Airlines and British Airways.

“It’s ironic that just as regulators are breaking up one monopoly – BAA – British Airways and American Airlines are trying to create another,” Branson said.

He added: “Our results prove that consumers want choice on transatlantic routes. Unless the regulators block the proposed BA/AA monopoly, consumers will lose out – and they’ll pay higher ticket prices for the privilege.”

www.virgin-atlantic.com