Virgin Atlantic revenue increase 5% to £2.87bn in 2013 financial year

Virgin Atlantic Airways (VAA) Limited, United Kingdom based airline which also operates daily flights between London and Lagos says its revenue for the financial year ending February 2013 rose by 5 percent to £2.87billion.

The airline however says even though ‘the Group showed increased revenues rising costs of doing business impacted significantly on overall performance’.

According to Craig Kreeger, VAA chief Executive, ‘the Group recorded pre-tax loss of £69.9million which comprises an airline loss of £93million and takes into account a one-off positive £35.4million exceptional item and £23.1m in other Group income.

“Revenue increased by 5 percent to £2.87 billion, there was improved airline load factor of 79 percent (up by 1.3 percent), continued strong cash position of £412.3 million, 5.5million passengers were flown by the airline which is an increase of 188,000 year on year”, that he said.,

He added that nearly 90,000 extra passengers were carried across Premium Economy and Upper Class, a 9.2 percent rise year on year; 100,000 extra passengers carried in Economy with customer satisfaction and loyalty scores having improved with Economy satisfaction scores at a five year high.

He said record levels of overall on time performance was achieved while it was the number one airline in punctuality performance at Heathrow on the majority of its routes and out-performed its key competitor in 11 out of 12 months.

He added that during the year, ‘150 flying jobs were created; cargo had a healthy turnover of £230million and performed well in a global market that showed decline; Virgin Holidays continues delivering profit and strengthening its distribution position, with a 6 percent year on year increase in forward sales for 2013/14, it also opened its 100th shop, and created over 135 new jobs and apprenticeships in the past year..

Kreeger said he is committed to returning the airline to profit within two years.

Kreeger, who joined Virgin Atlantic in February, outlined his programme to transform the business with a focus on network, alliances and reducing operational costs whilst continuing to invest in leading customer experience.

“Last year saw a double dip recession, a continued weak macro economy, and an Olympic Games which, although a fantastic event, severely dented demand for business travel, despite these challenging circumstances, the enduring strength of the Virgin Atlantic brand has not wavered – we have increased our revenues, our load factors, and carried many more passengers than the previous year. Virgin Holidays continues to be the UK’s preferred choice in long-haul trips worldwide, and has furthered its investment in product, customer service and the UK high street by opening innovative retail stores and creating jobs in city centres around the country.