March 10, 2015: For the year ended 31st December 2014, the Group is reporting a profit before tax and exceptional items of £14.4m, representing an improvement of £65.4m on the previous year's financial performance.
Virgin Atlantic Cargo reported revenues of £221 million for 2014, reflecting another year of resilience in a fluctuating global air cargo market that saw yields decline for the third year in a row.
The overall results confirm that Virgin Atlantic has delivered on the target it set in February 2013 to return to profit within two years. It is now looking to the future and positioning the business for future growth and sustained profitability whilst making significant investment in customer experience.
Calendar year ending December 2014 Group Performance at a glance:
- A Group pre-tax, pre-exceptional items, profit over 12 months of £14.4m, an improvement of £65.4m on the year ending December 2013 (£51.0m pre-tax loss)
- Group revenue of £2.9 billion
- Airline unit revenue up 0.5% (up 3.5% at constant currency)
- Airline unit operating costs flat year-on-year at constant currency
- Cargo revenue down 1.8% year on year (up 3.1% at constant currency) with strong export demand from the UK
Chief Executive Craig Kreeger said: "We want to be the airline most loved by our customers by always putting them at the centre of everything we do. These profitable results mark the successful conclusion of our recovery period and have put firm foundations in place for the future. We are confident that we have the right fleet, network and partners in place to be more profitable than ever before by 2018."
Virgin Atlantic and its customers gained significant benefit from its joint venture partnership with Delta Air Lines, launched in January 2014.
The increased transatlantic flying follows a network review undertaken by Virgin Atlantic in 2014 which led to its exit from several loss-making routes. The airline also took the decision to withdraw its domestic operation Little Red, with flights between Heathrow and Manchester ceasing later this month and Heathrow and Edinburgh and Aberdeen stopping in September 2015.
New routes will be launched this summer between Manchester and Atlanta, London Heathrow and Detroit, and London Gatwick and Tobago, as well as a series of seasonal flights between Belfast and Orlando and Glasgow and Las Vegas. There will also be increased frequency in services between Heathrow and major US destinations including San Francisco, Los Angeles, Atlanta and New York.
Virgin Atlantic President, Sir Richard Branson, said: "I can't think of a better way to complete our 30th birthday year than with a return to profit. The team at Virgin Atlantic has done a great job in turning around the airline and has the right strategy to take the business from strength to strength. Keeping our customers and our people at the heart of everything we do gives me great confidence in our future and I look forward to the next 30 years."