But Virgin Atlantic's Profits Are UP So Far

More airline industry news from across the pond today. Virgin Atlantic CEO Steve Ridgeway said today that no major airline should expect to make a profit this year, in the face of the global economic downturn.

Ridgway told The London Telegraph that a sharp decline of fares in the seats, volatile fuel prices, and extraordinary pressure to cut costs are all contributing factors to the problem. "These are some of the toughest times any of us [airline executives] can remember," Ridgway said. "I would be very surprised if anybody made any money.

Still, Virgin Atlantic, whose majority owner is Sir Richard Branson of Virgin Group, reported a near doubling of profits through February of this year. Ridgeway attributed the airlines' positive balance sheet to "early and decisive" action in the face of the global economic downturn. He said the airline deferred new aircraft, and hedged on fuel and currencies.

Sir Richard Branson, the President and Founder of Virgin Atlantic, had praise for his company. "The last financial year has proven to be the most volatile yet in our 25-year history", he said. "To increase profits against a backdrop of such a severe recession is an excellent achievement by all of our staff at Virgin Atlantic."

The London Telegraph reports British Airways showed a 13 percent drop in the so-called "premium sector" of first and business class fares, and an overall loss of more than $636 million. Mr. Ridgeway said Virgin Atlantic has not been forced to cut its premium fares as deeply because their overall passenger numbers have stayed stronger.

FMI http://www.virgin-atlantic.com/en/us/index.jsp