Virgin Atlantic is looking to make £45 million in cost savings to help it return to profit in two years.
The airline outlined its turnaround strategy as it reported a loss of £93 million, up from £80 million last year.
But, thanks to a one-off exceptional item and a profit at its tour operator Virgin Holidays, Virgin Group pre-tax loss was down at just under £70 million.
Revenue increased by 5% to £2.87bn and airline load factors were up by 1.3% to 79%.
Passenger numbers grew by 188,000 to 5.5 million.
Chief executive Craig Kreeger blamed the double dip recession, a continued weak macro economy, and the Olympic Games which "severely dented demand for business travel".
"Virgin Atlantic has a programme of measures going forward which I am confident will improve our financial performance considerably in 2013/14 and put us firmly on the road to a return to profit in spring 2015," he said.
The cost savings will focus on non-customer facing back-office operations, including IT systems and e-commerce.
A spokeswoman said it had, for example, forecast an £8 million saving in fuel due to a new software system being implemented.
She said the airline was also looking at departments across the business to "maximise working practices" but stressed that there are no widespread redundancies planned
