Virgin Atlantic has made a pre-tax loss for the second year in a row, having been hit by the weak UK economy, higher fuel costs due to a weaker British pound and problems with its Rolls Royce’s Trent engines.
However, the £26.1 million it lost up to the end of December 31, was significantly less than the £49 million lost in 2017.
Total revenue rose 5.8% to £2.78 billion following a near 5% rise in passenger numbers to 5.4 million. Revenue per customer was up 1.7%.
"While a loss is disappointing, our performance has improved in 2018 despite challenging economic conditions and put us on a trajectory for growth and return to profitability," said new CEO Shai Weiss.
Finance chief Tom Mackay said that while economic factors would continue to challenge the carrier in the year ahead, Virgin Atlantic was in a strong cash position.
The results are the company’s first since its acquisition of troubled regional airline Flybe for $2.8 million earlier this year, in a joint bid with Stobart Group and Cyrus Capital.
In September this year it will launch flights between Tel Aviv and London and next year it is planning to start its first flights to South America when it launches a London to Sao Paulo service.
