• UK
  • Ireland
  • Netherlands
  • Germany
  • USA
  • South Africa
  • Australia

Travel News

 

Search news stories

 

News Feeds

bloglines
Google
Live
Technorati
RSS
DCS

Virgin Atlantic toasts business class for increased profits

Virgin Atlantic toasts business class for increased profits Virgin Atlantic has been toasting a 38 per cent rise in pre-tax profits thanks in part to a record number of business travellers.

The airline revealed yesterday that profits before tax reached £60.9 million for the financial year 2007/2008 which was a significant rise on the previous year's £44 million.

This was thanks largely to a 22 per cent rise in premium customers as part of a 7.6 per cent overall rise in passengers to 5.7 million for the year.


However, the results did exclude the £32 million loss the airline incurred as a result of a class-action lawsuit pertaining to charges related to price fixing.

This was due to Virgin and British Airways (BA) both admitting to collusion on long-haul flight surcharges for the period between August 2004 and January 2006.

That aside, Virgin revealed a solid start to the current financial year as sales have risen by 16 per cent during the first quarter.


Steve Ridgway, Virgin chief executive, said that "against the backdrop of high oil prices and weakening consumer demand, we are well-placed to succeed over the coming months".

Virgin president Sir Richard Branson took the opportunity to comment on the Competition Commission's recent ruling about the potential break-up of airport authority BAA, as well as BA's proposed transatlantic partnership with American Airlines.

"It's ironic that just as regulators are breaking up one monopoly, BAA, British Airways and American Airlines are trying to create another," the Press Association reports him saying.

"Our results prove that consumers want choice on transatlantic routes. Unless the regulators block the proposed BA/AA monopoly, consumers will lose out and they'll pay higher ticket prices for the privilege," he added.


Airline News posted on 27 August 2008

Have your say - Post a new Comment!

Heading:
Comment:
Anonymous: