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Virgin Atlantic on target for first revenue since Covid

Virgin Atlantic stated it’s on target to make its first revenue for the reason that pandemic after robust demand for winter breaks within the Caribbean boosted enterprise.

The airline – which is co-owned by Richard Branson’s Virgin Group and US provider Delta Airlines – yesterday reported losses of £139million for 2023 following a £206million loss the earlier yr.

But revenues rose by £265million to a document £3.1billion as high-spending British holidaymakers splashed out on winter breaks within the Caribbean.

Virgin Atlantic is now benefiting from US vacationers reserving spring and summer time journeys to Europe and its enlargement into India. 

Flights to the Maldives and Dubai have additionally been in demand.

In demand: Virgin Atlantic is now benefiting from US tourists booking spring and summer trips to Europe and its expansion into India

In demand: Virgin Atlantic is now benefiting from US vacationers reserving spring and summer time journeys to Europe and its enlargement into India

The turnaround comes after a near-death expertise when Covid-19 grounded planes everywhere in the world and left airways preventing for his or her futures.

Since then, Virgin Atlantic has been closely weighed down by the debt it took on to outlive the pandemic.

But in an indication the enterprise is now recovering, chief government Shai Weiss insisted this yr can be ‘the turning point for Virgin Atlantic, the culmination of our transformation and the year we can make it count’.

He stated the provider has ‘capitalised on continued strong demand for leisure air travel and holidays’ although enterprise journey is rebounding extra slowly.

‘A loss is never satisfactory,’ added Weiss. ‘However, our performance and results illustrate that we have made really good progress in 2023, the plan is working, and Virgin Atlantic is on course to return to profitability in 2024.’

Virgin Atlantic, which was launched in 1984, flew 5.3m passengers to long-haul locations such because the US, the Caribbean and India final yr.

Founder: Virgin Atlantic is co-owned by Richard Branson’s Virgin Group and US carrier Delta Airlines

Founder: Virgin Atlantic is co-owned by Richard Branson’s Virgin Group and US provider Delta Airlines

This is a few 10 per cent down on pre-pandemic ranges whereas the variety of company travellers continues to be down round 20 per cent.

But it’s aiming to fly 6m clients this yr – a degree final achieved in 2019 earlier than the Covid pandemic struck.

Chief monetary officer Oliver Byers stated passengers have been keen to pay ‘robust’ fares and the beginning of the brand new yr has been ‘very encouraging’. 

He added: ‘We’ve seen very robust demand from a premium leisure perspective and likewise some additional restoration in company journey.’

Corporate journey, which not like leisure has not absolutely recovered for the reason that pandemic, dipped in direction of the tip of 2023, he stated.

Virgin Atlantic, which is able to launch a second each day service from London to Mumbai in October, is now aiming to extend working revenue to round £200million this yr, double the document achieved again in 1999.