Virgin Atlantic has this week announced a reduction in it’s loss, with the CEO saying that the plan to return to profitability is working.
The airline has been in financial downturn over the last few years, but the path to recovery is going well so far.
Without further ado, let’s get into it…
The Numbers from Virgin Atlantic…
Virgin Atlantic has recorded a pre-tax loss of £139m in 2023, which is a reduction from £206m in 2022.
However, EBIT did surpass pre-pandemic levels, with this being recorded at £80m.
Revenues increased by £265m to £3.1bn, which shows things are going in the right direction.
Cargo revenues, however, dropped to £196m from £377 million recorded in 2022.
Virgin Atlantic CEO Shai Weiss had this to say on the results, as per City A.M.:
“[We are experiencing] continued strong demand… which shows that desire for experiences and travel remains.”
“A loss is never satisfactory, 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.”
Profitability Expected This Year…
It is understood that Virgin Atlantic is expected to achieve profitability in 2024.
If CEO Shai Weiss can achieve this, then this will be the first time since 2016 that a profit has been generated by the airline.
This is more than likely going to happen, especially with the passenger numbers rising strongly as well.
Back in 2022, Virgin Atlantic handled 4.4m passengers. In 2023, they handled 5.3m.
In that time, more aircraft have been received by the airline, which has enabled steady route growth which in turn will contribute to the turn-around.
Overall…
In conclusion, whilst the results from Virgin Atlantic aren’t great, they are turning things around.
There would be more cause for concern if the losses had increased, but they haven’t, which is a good thing.
Looking ahead, all eyes will be on whether the airline will hit profitability in 2024, as CEO Shai Weiss predicts.
The Summer 2024 season will be a turning point for the airline as they will have a good chance to get back into the green.
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