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Hike in business traffic boosts Virgin’s profits
A 10% increase in business passengers has helped Virgin Atlantic boost profits and achieve record sales in the last financial year.
The airline said the launch of its new Upper Class Suite helped to attract more premium-paying passengers in the year to February 28, compared with the year before.
It recorded revenues of £1.91 billion, up 17% on the previous year.
Pre-tax, pre-exceptional profits for Virgin Atlantic Limited, which includes Virgin Atlantic, Virgin Nigeria Airways and Virgin Holidays, more than doubled from £20.1million to £41.6million.
The airline said 4.9 million travellers flew with Virgin Atlantic and Virgin Nigeria, up 11% on the year before.
“The profits come despite a tougher operating environment, with a 30% increase in fuel costs over the year and continuing overcapacity on some routes, especially between the UK and the North Atlantic,” said a spokesman.
Next month, Virgin will start London to Montego Bay, Jamaica, and will add a sixth daily London and New York flight.
The airline will also start a second daily service between London and Hong Kong, initially four times a week from November and then daily from February 2007.
In November 2007, it will begin flying to Mauritius as part of its strategy to expand the leisure market.
Services between London Gatwick and Mauritius will operate twice a week on Mondays and Fridays on a Boeing 747-400 aircraft.
The 2005/6 profits have triggered a payout of the company Airshare scheme, amounting to an average of £620 each for eligible staff. It is the fourth year that the Airshare scheme has paid out a bonus.
By Bev Fearis
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
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