Virgin Atlantic makes annual loss after high fuel costs

Virgin Atlantic plane Virgin said trading condition in the airline industry were "incredibly challenging"

Related Stories

Virgin Atlantic has reported an annual loss because of higher fuel prices.

The carrier made a loss of £80m in the 12 months to the end of February, compared with a profit of £18.5m a year earlier.

Founded by Sir Richard Branson and 49% owned by Singapore Airlines, Virgin said its fuel costs rose by one third.

Revenues at the airline increased 3% to £2.74bn, while its passenger numbers went up by 2% to 5.4 million.

Its load factor - the measure of how full its flights were - totalled 78%.

Virgin's chief executive Steve Ridgway said: "In an incredibly challenging market, we have managed to grow top line revenues and fly more customers than last year.

"However, with the prevailing uncertainty in the economy, sky high fuel prices and a 25% hike in our air passenger duty fees, converting this sales growth into profit has not been possible."

Virgin's annual results came on the same day as rival International Airlines Group (IAG), the owner of British Airways and Iberia, reported a half-year loss of 390m euros ($476m; £306m).

IAG also said that the higher cost of fuel was a big factor in its loss.

More on This Story

Related Stories

The BBC is not responsible for the content of external Internet sites

More Business stories

RSS

Features

  • Shinji Mikamo's father's watchTime peace

    The story of the watch that survived Hiroshima


  • Northern League supporters at the party's annual meeting in 2011Padania?

    Eight places in Europe that also want independence


  • Scottish terrierShow-stealers

    How Scottie dogs became a symbol of Scotland


  • Hamas rally in the West Bank village of Yatta, 2006Hamas hopes

    Why the Palestinian group won't back down yet


  • The outermost coffin of Tutankhamun 'Tut-mania'

    How discovery of Tutankhamun's tomb changed popular culture in 1920s


BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.