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Virgin Atlantic posts hefty losses

by LLB Reporter
10th Apr 19 2:41 pm

Virgin Atlantic has posted hefty losses for the second consecutive year, as Brexit and the pound, engine woes and uncertainty has hit the airline.

Founded by Sir Richard Branson, the carrier posted £38.9m losses for the year to 31 December, compared to £65.5m in 2017. With exceptional items stripped out the company posted a £26.1m loss.

Total revenue at Virgin rose by 5.8% to £2.8bn, also included is a positive passenger growth at 1.7% since 2014.

The group was impacted by faults with Rolls-Royce Trent 100 engine parts, this led to a few Boeing 787 Dreamliners being grounded. British Airways has also been impacted.

Performance was hot hit by “softer consumer demand” linked to the Brexit vote, a weaker pound versus the US dollar and economic uncertainty.

Chief executive Shai Weiss said, “While a loss is disappointing, our performance has improved in 2018 despite challenging economic conditions and put us on a trajectory for growth and return to profitability.

“And, the acquisition of Flybe will secure the future of Europe’s largest regional airline, extending the Virgin Atlantic experience and delivering more choice for customers connecting from the UK and Europe on to our long haul network.”

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