Annual profits almost double for Virgin Atlantic

Virgin Atlantic has bucked the trend among airlines after reporting that it has almost doubled profits.

In the 12 months to the end of February, pre-tax profits rose to £68.4 million, compared with the £34.8 million reported a year earlier.

The announcement comes as many airlines continue to experience a slump in demand with many forced out of business last year. According to the International Air Transport Association, passenger numbers plummeted 11% in March compared to the same month last year.

Just last week, British Airways (BA) announced a pre-tax loss of £401 million for the 12 months to the end of March, compared with profits of £922 million the previous year.

BA’s loss represented its biggest loss since the company was privatised in 1987.

Furthermore, Europe’s largest airline, Air France-KLM, said it is to axe 2,700 positions as it reported a net loss of €505 million (£444 million) in the three month period to the end of March, compared with a €534 million loss compared with the same period a year earlier.

Returning to Virgin Atlantic, a rise in premium fare passengers boosted its results. Steve Ridgway, Virgin Atlantic chief executive, told the BBC: “We are winning market share from our competitors during the toughest trading environment ever.”

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