GSS,
The passenger numbers have been good, of that there is little doubt. The problem is with the yield from the sold seats.
Any muppet can fill an aircraft with passengers, it's the ability to make a profit out of the aircraft that is difficult. Whilst the flights have been full you don't know what passengers have paid for their seats and thus the profit margin available to the airline operator.
Add together the ridiculous costs associated with BAA airports, the daylight robbery of the Airport Passenger Duty tax (£60 for the 'privilege' of leaving the UK?) and the pressure on the profitable part of the ticket is an ever increasing spiral.
Don't let passenger numbers cloud the fact that the airline industry is still in severe economic decline. The absence of premium traffic is hurting the bigger carriers as they desperately try to restructure to take advantage of the 'bulk' economy travellers over the next year or two. Both VA and BA are operating aircraft configured towards the high yield business/first passenger with, subsequently, less seats for economy thus reducing the yield.
Time will tell, but it's still going to be painful for a year or two I feel. As VA and BA mull the spectre of compulsory or voluntary redundancy during their restructuring I think the out look for 'wannabees' is not looking very rosy at all.