Virgin results boosted by holiday sales
Virgin Atlantic Group saw its pre-tax profit almost double last year following an 85% increase in the profitability of its tour operating arm.
For the year ended December 31, it made a profit before tax and exceptional items of £22.5 million, an increase of £10.1 million over 2014.
It said Virgin Holidays ‘performed strongly and made a substantial contribution’ of £10.9 million, a rise of £5 million.
The Group’s results were also boosted by a £196 million drop in its fuel bill, although it admitted that due to its hedging (agreeing the price of fuel in advance), it hadn’t fully benefited from the fall in oil prices.
Virgin Atlantic chief financial officer Shai Weiss said: "Falling fuel prices reduced our costs but led to a downward pressure on fares, meaning it was a great year for our customers, especially when combined with our £300m investment programme.
"Our fuel hedging programme meant we did not benefit fully from the fall in the price of oil, but our hedging position will continue to unwind and give us significant savings in 2016.
"We are confident that moving forward we have the right fleet, network and partners in place to be more profitable than ever before by 2018."
Virgin said its partnership with US carrier Delta, now in its second year, increased its contribution to the Group’s profits by 55%. The two airlines now codeshare on more than 550 routes.
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
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