A return to profit for Virgin, but a rather downbeat assessment of the year ahead:
Virgin Atlantic Airways - Popup
Pre-tax operating profit of £18.5m
Revenues increased by 13% to £2.7bn
Cargo revenue increased by 39% to £224m
82% load factor
Strong year end cash position of £562m
New London to Accra route launched
"Whilst we have been very focused on trading the airline back to profitability, we have worked hard to introduce new aircraft, new routes and extra rotations to the existing network where there has been high demand. This year we are investing heavily in new product innovation so that we retain and enhance our leadership in customer service and experience," said Steve Ridgway.
Virgin Holidays also recorded a strong performance driven by high demand for its core Orlando and Caribbean holidays. The company is doubling its UK retail network to 120 stores, creating 200 jobs nationwide.
Quarter 1 2011/12 (1st March to 31st May 2011)
Total revenue up by 7.6% to £658m
Two new Airbus A330s introduced on leisure routes
New Manchester to Las Vegas route launched
Steve Ridgway said: "Since the turn of the year, market conditions have become tougher with increased capacity, faltering consumer confidence and high fuel prices. We are also seeing softer trading in the areas that are hit hardest by the continued rises in Air Passenger Duty, particularly the Caribbean routes and Premium Economy cabins. Whilst business traffic remains strong, demand in the economy cabin is more challenged."