One only has to read this article to see that there is a world of creative accounting going on and that the company has invested heavily in itself thus reducing its bottom line profit (tax liability).
http://allafrica.com/stories/200708210290.html
In summary from article;
The airline announced that new routes and growth in fleet were attributable to its record sales, adding that its core sales increased by 13 per cent from £1.88billion the previous year, to £2.14billion.
The number of passengers increased by 10.5 per cent, to 5.1 million, as Virgin Atlantic expanded the number of destinations it serves around the world
Pre-tax profits for Virgin Atlantic and its leading tour operator Virgin Holidays, excluding Virgin Nigeria Airways, were £46.8 million following a major investment programme in products including the Upper Class Suite, the new Premium Economy cabin, new route infrastructure, and the new London Heathrow Clubhouse
Sir Richard Branson, President of Virgin Atlantic, commented: "The last financial year has seen Virgin Atlantic continue to strengthen the value of its busines through investment in people, new aircraft, new routes
Substantial investment continued to help th expansion of Virgin Nigeria Airways, the start-up private sector flag carrier for Nigerian which Virgin Atlantic has a 49% stake. Losses at thecarrier were £40.8million but sales increased sharply, from £24million to £83.6million.
As stated above, everything increased excpet profit - of course it did spending programme is huge.