Privately held Virgin Atlantic Airways reported a pre-tax loss of 93 million British pounds (about $142 million) for its fiscal year ending Feb. 28.
Virgin Atlantic Ltd., a group that includes the passenger airline business as well as Virgin Holidays and an air cargo business, posted a pre-tax loss of 69.9 million pounds (about $107 million), which included positive special items.
Group revenue for the 12-month period increased 5% year over year, with a modest increase in total passenger counts and a passenger load factor improvement of 1.3%.
The carrier reported a 9.2% increase in passengers traveling in Premium Economy and Upper Class.
Virgin Atlantic CEO Craig Kreeger, a former American Airlines executive appointed this year, expected an improved financial performance for this year and has established a plan to "return the business to profitability within a two-year time frame," according to a statement.
The path to profitability includes the carrier's new U.K. domestic business, its pending joint venture with Delta, the impacts of a more fuel-efficient fleet and other initiatives, including a cost-savings program that calls for "45 million pounds in financial improvements in the current fiscal year."
Source: Business Travel News