Virgin Atlantic expects a return to profitability this year for the first time since the pandemic after a rebound in travel demand.
Having made “really good progress in 2023,” chief executive Shai Weiss said the airline’s “plan [was] working” in a statement with full-year results on Wednesday.
“Virgin Atlantic is on course to return to profitability in 2024,” he added.
Backed by Richard Branson’s Virgin Group and America’s Delta Airlines, the company reported a narrowed pre-tax loss of £139 million for 2023, against £206 million a year earlier.
Earnings before interest and taxes surpassed 2019 levels at £80 million meanwhile, on the back of a 9% jump in revenue to a record £3.1 billion.
This was partially “due to robust customer demand for premium leisure air travel and holidays,” the airline explained.
Airlines have enjoyed a boost over the past year on pent-up demand following the pandemic, which had grounded the industry in early 2020.
Short-haul carriers have recovered faster than long-haul, though, with Virgin noting a lag in corporate travel demand against 2019 levels.
“In 2023, we flew more sectors than 2019 with four fewer aircraft, illustrating the efficiency of our fleet today,” chief financial officer Oli Byers continued.
“Combined with continued cost discipline and protecting cash, these actions ensure we are positioned to return to profitability.”
Virgin Atlantic added it was set for a 12% increase in capacity through the delivery of six new jets over the coming year, plotting a course to record revenues and operating profit.