Virgin Atlantic posts annual loss for second year running
Shaky economy, weaker pound, and engine problems weigh on airline
London — Virgin Atlantic on Wednesday reported an annual pretax loss for the second consecutive year, hit by a shaky economy, the higher costs of fuel generated by a weaker British pound and problems with Rolls Royce’s Trent engines. The airline, the 1980s’ brainchild of British billionaire Richard Branson, fell back into the red in 2017 after three years of profits, as competition intensified and the weakening of the pound added to already rising fuel costs. Best known in Europe for the trans-Atlantic planes it flies with Air France-KLM and Delta, Virgin said its loss before tax and exceptional items was £26.1m for the year ended December 31, compared with a loss of £49m in 2017. Total revenue rose 5.8% to £2.78bn, as passenger numbers grew just under 5% to 5.4 million and revenue per customer rose 1.7%. The company said performance had suffered from economic uncertainty and the weaker pound — which increases costs because fuel is priced in dollars — as well as the well-documented ...
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