Virgin blames a second year of losses on the Olympics
Virgin Atlantic slumped to a £93m loss for the 12 months to March, the second consecutive year of major losses, with Sir Richard Branson's airline blaming the Olympics for "severely denting demand for business travel".
The final group loss was a slightly better £69.9m, which includes the addition of the £35m contingency cash that the airline had set aside after an investigation into price-fixing, which was then not called upon, and £23.1m licensing income from the Virgin America and Virgin Australia carriers.
Virgin managed to increase revenues by 5 per cent to £2.87bn for the year to March, and passenger numbers rose slightly to 5.5 million. But Craig Kreeger, the new chief executive, who has frozen wages as part of his attempt to return the airline to profit in two years, said: "Last year saw a double-dip recession, a continued weak macro economy and an Olympic Games which, although a fantastic event, severely dented demand for business travel."
However, its rival British Airways, a part of International Airlines Group, which ran a campaign for Britons to "stay at home" during the Olympics, made an operating profit of €347m (£292m) in 2012.
Mr Kreeger, a former customer services chief at American Airlines who took over from his long-standing predecessor Steve Ridgway in February, now has to work on Virgin's transatlantic partnership with the American giant Delta Air Lines, with the aim of taking on British Airways' tie-up with American Airlines. Delta last year paid $360m (£235m) for a 49 per cent stake in Virgin.
- 1 Autistic adults could take pure MDMA to 'reduce social anxiety'
- 2 Before you complain about your GP, this is what you need to know about actually doing the job
- 3 Father of 12 accused of raping, beating, starving and abusing his own children in US 'cult'
- 4 Britain's Got Talent 2015: Jamie Raven divides Twitter as fans expose mind-boggling magic trick
- 5 Charlie Charlie Challenge explained: not a Mexican demon being summoned — it's gravity
People are criticising Fifa World Cup sponsors with corrupt corporate logos
Natalie Portman tells Harvard graduates: 'Accept your lack of knowledge'
British tourists complain impoverished boat migrants are making holidays 'awkward' in Kos
Fifa corruption live: Sebb Blatter warns 'more bad news may follow' as he clings to power
Skull found in Spain could be the world's first-ever murder victim
EU referendum: David Cameron's rules are a 'democratic disgrace', says French-born Scottish politician set to be denied a vote
SNP fury as HS2 finds 'no business case' for taking fast train service to Scotland
Australian man punched in the face for defending Muslim women from abuse on train
A nation of inequality: How the UK is failing to feed its most vulnerable people
David Starkey 'tells Amal Clooney to shut up and stop over-promoting human rights'
EU referendum: David Cameron to deny EU migrants and under-18s the chance to vote
iJobs Money & Business
£30 - 35k: Guru Careers: We are seeking a Pricing Analyst to join a leading e-...
£20000 - £25000 per annum + OTE £45K YR1: SThree: At SThree, we like to be dif...
£20000 - £25000 per annum + competitive: SThree: Did you know? SThree is a mul...
£55 - 65k (DOE): Guru Careers: A unique opportunity for a permanent C# Develop...