Virgin receive boost from business travelers
August 27, 2008
Virgin Atlantic has seen profits rise as record numbers of business passenger’s travel. The airline saw pre-tax profits of £34.8 million in the 2007/2008 financial year, which is up from £6 million the year before.
Virgin, 51% owned by Sir Richard Branson, said premium passenger numbers rose 22% during the year. The carrier took the market share from BA (British Airways) and other rivals. A total of 5.7 million passengers flew with Virgin Atlantic during the year, a rise of 7.6%.
Virgin said it had gained passengers from BA because of the chaos at Heathrow’s Terminal 5.
In contrast to most other airlines Virgin has defied the gloom surrounding the industry. Soaring oil prices have put huge strain on airlines with several going out of business.
Carriers such as Spanish airline Iberia and Hong Kong’s Cathay have reported losses and others such as British Airways and Air France KLM have seen profits fall.
Steve Ridgway, Virgin Atlantic’s chief executive said “While the outlook remains pretty overcast for the aviation industry, the winners will be those airlines that focus on offering the best customer service”.
“We have diversified our route network, focused on providing the best product in Upper Class, Premium Economy and Economy, hedged our fuel purchasing and built up a strong cash position,” he added.
The carrier said the financial year had got off to a strong start with sales between April and June up 16% to £645.3 million.
Virgin Atlantic has long-haul routes to North America, the Caribbean, Africa and Asia.
For more information on Virgin Atlantic visit www.virgin-atlantic.com.
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