Virgin Atlantic Ltd operating profits have crashed from £32.6m to £3.5m, according to accounts filed by the airline and reported in the Financial Times.
Virgin Atlantic Ltd comprises the airline, Virgin Holidays and a 49% stake in Virgin Nigeria Airways and while in the year to the end of Feb 2007, group turnover increased by 16% to £2.2bn, with pax breaking through the 5m barrier at 5.3m, operating profit came in at £3.5m compared with £32.6m.
However, Virgin Nigeria accounted for operating losses of £39.8m, following on from the £32.9m deficit it chalked up in the year to end-Feb0.
The steep fall in profits prompted the Financial Times to suggest that Singapore Airlines, owner of a 49% share of Virgin Atlantic Ltd, is reviewing the the future status if its holding.
Branson has previously said that Virgin Group has ‘first refusal’ on Singapore’s stake.
Report by The Mole
