UK long-haul airline Virgin Atlantic returned to profit in 2024 for the first time since the start of the Covid-19 pandemic five years ago.
The carrier reported a profit before tax and exceptional items of £20 million last year, compared with a loss of £139 million in 2023 and a loss of £206 million in 2022.
Virgin Atlantic was boosted by “continued demand” from business travellers during 2024, as total revenue rose by 6 per cent year-on-year to £3.3 billion, including £2.6 billion in passenger revenue - £1 billion of these sales originated from US customers.
The airline’s total capacity (measured in available seat kilometres) increased by 7.6 per cent last year compared with 2023, as Virgin Atlantic carried a total of 5.6 million passengers during 2024, up from 5.3 million the previous year, with a load factor of 77.3 per cent.
Shai Weiss, the airline’s CEO, called 2024’s financial results “a big step forward” for Virgin Atlantic as it prepares to launch several new routes this year.
“We returned to profitability for the first time since the pandemic, repaid a large chunk of debt and faced into operational challenges by taking decisive action,” added Weiss. “2024 was a turning point for Virgin Atlantic and the culmination of our transformation.
“We have a plan in place for 2025, with much to look forward to including a new app, new routes to Toronto, Riyadh and Cancun, a new clubhouse in Los Angeles and greater stability for our operation.”
In a statement, Virgin Atlantic said that “continued cost discipline” had allowed it to achieve its “highest ever” profit before tax and interest (EBIT) of £230 million in 2024 – up from £48 million in 2023 and double the previous record set in 1999.
The airline also paid down £174 million of “pandemic-related” debt during the year, as well as completing £485 of debt financing on “improved terms”.
CFO Oli Byers added: “2024 financial results reflect a second consecutive year of our teams delivering record revenues coupled with sustained cost discipline.
“Alongside the operating results, we continued to repay large parts of our pandemic debt. Our achievements go a long way towards building a stronger and more secure future for Virgin Atlantic.”
Virgin Atlantic also completed its “fleet transformation” during the summer of 2024, which includes an order for seven Airbus A330-900s.