Virgin Atlantic has announced record losses for the year to the end of February although the figures are a little confusing, so I shall list them here, in order of magnitude:
Airline loss, pre-tax and before exceptional items: £128.4m
Airline loss, after exceptional items: £93m
Group loss: £69.9m
The largest exceptional item was the saving from the closure of an OFT investigation into price fixing, which saved £35.4m.
Hope that’s clear!
Now for revenue, etc.:
Revenue: £2.87bn, up 5%
Passengers carried: 5.5m, up 3.5%
A £45m cost saving program has been launched by Craig Kreeger, aiming for profitability by 2Q2015, aiming for great back office efficiency, along with other benefits.
In my opinion, the airline loss is kind of what was speculated in the media, but I always find the group results interesting, what bits made profits and losses? They don’t disclose these unfortunately, cause they are a private company so I guess I’ll just have to wonder in vain.
VS seems to be in a good position to improve with the numerous changes this year, and increased slot access at Heathrow is always valuable, let’s not forget that 4/13 short haul daily slot pairs they had to acquire themselves, which can’t have been easy (or cheap). Again, the cost of those we will probably never know.
Nonetheless good news in revenue and pax, bad in loss, such is the industry!