Virgin Atlantic delays return to profit as costs jump
Virgin Atlantic has pushed again its expectations for a return to profitability, as rising prices restrict its capacity to capitalise on a rebound in air journey.
The airline stated on Wednesday that it now anticipated to show a revenue in 2024, after forecasting final yr that this may occur in 2023.
The group, which had struggled to show a revenue even earlier than the Covid-19 pandemic devastated the airline sector, reported a loss earlier than tax of £342mn for 2022.
Regardless of Virgin’s passenger numbers virtually quadrupling as Covid restrictions on journey had been lifted final yr, chief monetary officer Oliver Byers stated profitability had been affected by a weaker than anticipated pound and excessive inflation. Rising rates of interest have additionally elevated the price of repaying Covid-related money owed, he stated.