Virgin Atlantic 'on track' for 2024 profit despite another year of losses

The figure for the calendar year comes despite record revenue of £3.1 billion, an increase of £265 million year on year. The 2023 loss also follows a £206 million deficit in 2022.

The airline said the 2023 results “reflect progress made in a year of sustained customer demand”. Virgin is now mid-way through its four-year plan to return to profit. “The 2023 financial, commercial and operational results illustrate that Virgin Atlantic is on course,” it said. 

The carrier hailed “robust customer demand for premium leisure air travel and holidays”, with corporate travel being slower to return to pre-pandemic levels.

During the year, Virgin carried 5.3 million passengers with an average load factor of 77% and a 16% increase in capacity due to bigger aircraft. It hopes to return to pre-Covid levels of six million passengers this year, boosted by new routes to Turks and Caicos, Maldives, Bengaluru and a resumption of services to Dubai. Virgin will also go double-daily to Mumbai from October.

Shai Weiss, Virgin Atlantic chief executive said: “In 2023, we capitalised on continued strong demand for leisure air travel and holidays, which shows that desire for experiences and travel remains, resulting in record revenues. 

“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 in 2024.”
 
Virgin, which is 49% owned by Delta Air Lines, will mark 40 years of flying in June, and Weiss said 2024 “is the turning point for Virgin Atlantic, the culmination of our transformation and the year we make it count”.
 
Oli Byers, the airline’s chief finance officer, added: “In 2023, we flew more sectors than 2019 with four fewer aircraft, illustrating the efficiency of our fleet today. 

“As customer demand for travel endures, we will go further this year by welcoming six new aircraft and capacity growth of 12%, while maintaining cost discipline as always, targeting record revenues and operating profit.”