Virgin Atlantic has posted a reduction in losses in 2013 thanks to the company’s turnaround programme. In the 12 months to December 2013, Virgin Atlantic made a pre-tax loss of £51 million. Last year, it reported a loss of £128.4 million. During the ten months from March to December, the airline was keen to point out that it made a profit of £7 million before tax and exceptional items. Group turnover increased by 4.9%, with passenger revenue totalling £153 million.
New chief executive Craig Kreeger praised the "good progress" made last year and that the airline would reach profitability by the end of 2014.
Kreeger has focused on cost cutting since taking charge and during that time has launched UK domestic carrier Little Red and tightened relations with Delta Airlines, which owns a 49% stake in the UK carrier.
"Going forward, the impact from our Delta relationship, which greatly enhances our revenue opportunities in the US…means we are confident that we will deliver on our target and return to profitability," Kreeger said.
Meanwhile, Virgin Atlantic Cargo has reported record load factors but a 3% fall in revenue due to the continuing weak cargo market.
The cargo business reported turnover of £225.3 million for 2013, exceeding expectations, while the period saw the airline achieve the highest ever average cargo load factor in its 30-year history of 76%, up 6% year-on-year and well ahead of the industry average.
Tonnage carried by Virgin Atlantic was 5% higher at 224,500 tonnes in 2013 in a market that declined 0.5% overall. Revenues were down 3% compared to the previous year, reflecting the airline’s 7% reduction in capacity over the year.
John Lloyd, Director of Cargo for Virgin Atlantic, said: “Our 2013 results show that we outperformed the market for a second consecutive year and increased our share by 5% at a time when many of our major competitors’ businesses were in decline. The excessive amount of cargo capacity that started to return to the market in 2013 continued the downward pressure on yields but we have clearly been more successful in managing this challenge than many other carriers.”
Asia Pacific produced Virgin Atlantic’s biggest cargo gains in 2013 with a 12% increase in tonnage and a 3% rise in revenues. Tonnage on its Americas network was 5% higher and the Europe, Middle East and Africa region grew 3%.