Virgin Atlantic has released its annual financial results for the year ending December 31, 2022, showing a strong recovery from the COVID-19 pandemic.
Virgin Atlantic’s Financial Results…
The airline reported total revenue of £2.9 billion, recovering to 98% of pre-pandemic revenues. Underlying EBITDA was £310 million, and underlying EBIT was £71 million, both returning to pre-pandemic levels of performance.
The results were driven by a surge in customer demand for travel, as well as the continued demand for air freight.
Virgin Atlantic operated 21,835 sectors in 2022, an increase of 61% compared to 2021 and 93% compared to 2019. Cargo revenues were £377 million, 75% above 2019 levels.
Despite the strong recovery, Virgin Atlantic still posted a loss of £206 million before tax and exceptional items.
This was due to a number of factors, including the continued impact of the pandemic, rising fuel costs, and the war in Ukraine.
However, Virgin Atlantic is confident that it is on track to return to profitability in 2024.
The airline has a number of initiatives in place to reduce costs and boost revenue, including the introduction of new fuel-efficient aircraft, the expansion of its cargo business, and the development of new routes.
Virgin Atlantic CEO Shai Weiss said: “We are pleased to report a strong recovery in our financial results for 2022. This is a testament to the hard work of our people and the resilience of our business.”
“We are confident that we are on track to return to profitability in 2024.”
Comparison to Previous Years
Virgin Atlantic’s financial results for 2022 were a significant improvement over the previous two years.
In 2021, the airline reported a loss of £1.4 billion, and in 2020, it reported a loss of £1.1 billion.
The improvement in 2022 was due to a number of factors, including the following:
- A surge in customer demand for travel. As the COVID-19 pandemic began to subside, more and more people were looking to travel again. This led to a significant increase in demand for Virgin Atlantic’s flights.
- The continued demand for air freight. Even as the global economy slowed down in 2022, the demand for air freight remained strong. This was due to a number of factors, including the ongoing COVID-19 pandemic and the war in Ukraine.
- The introduction of new fuel-efficient aircraft. In 2022, Virgin Atlantic began to take delivery of new Airbus A350-1000 aircraft. These aircraft are more fuel-efficient than the airline’s older aircraft, which helped to reduce costs.
- The expansion of its cargo business. In 2022, Virgin Atlantic expanded its cargo business by opening new cargo facilities in London and New York. This expansion helped to boost the airline’s cargo revenues.
- The development of new routes. In 2022, Virgin Atlantic launched new routes to a number of destinations, including Tel Aviv, Bangalore, and Osaka. These new routes helped to increase the airline’s passenger revenues.
Outlook for 2023
Virgin Atlantic is confident that it will continue to recover in 2023.
The airline expects to see continued growth in passenger demand, as well as strong demand for air freight.
Virgin Atlantic is also planning to introduce more new aircraft in 2023, which will help to reduce costs and boost revenues.
Overall, Virgin Atlantic is in a strong position heading into 2023.
The airline has a number of initiatives in place to reduce costs and boost revenue, and it is confident that it will return to profitability in the near future.