Virgin Atlantic Returns To Profit For First Time Since Pandemic

Virgin Atlantic said record revenues have helped it to a pre-tax profit of £20 million ($26 million) for 2024, its first return to profitability since 2016.

The airline reported revenues of £3.3 billion, up £183 million compared to 2023, fueled by passenger capacity growth of 7.6%, continued business and premium leisure demand and the launch of Unlimited Availability, which means loyalty scheme members can book any seat on board, it said.

Virgin Atlantic Holidays reported a 10% increase in revenue to £517 million.

Virgin Atlantic expects capacity to grow by a “more modest rate” of 3.5% than in recent years, in 2025, the airline said.

“Demand for travel has remained strong through the first quarter of 2025, with peak campaign sales up year-on-year, boosted by capacity growth on routes such as Dubai and the Maldives,” CFO Oliver Byers said in the company’s annual report. “Growth will be delivered through the annualized impact of 2024 aircraft deliveries, deployed into new markets: Riyadh, Cancun and Toronto.”

Reuters reported, however, that Byers had told journalists there were signs of transatlantic demand slowing in recent weeks, after a very strong start to the year, with some flat weeks and some negative in recent times. Reuters reported that Byers described that as a natural reaction to consumer uncertainty in the U.S. and said U.S.-UK revenues were expected to grow this year, compared to 2024, while UK-U.S. travel was “pretty strong.”

Virgin Atlantic did not respond to a request for confirmation of the comments.

Virgin Chairman Peter Norris said in the company’s annual report that while business travel had not yet recovered to the extent the airline had expected by now, it has been happy with the strength of demand for premium leisure travel. “But we remain constantly alert to changes in consumer sentiment. The impact of inflation, of precarious government finances and now the potential disruption of trade wars, are all cautionary factors in our plans.”

The airline carried 5.6 million passengers in 2024, with a load factor of 77.3%.

2024 passenger revenue of £2.6 billion beat previous records and was up £179 million versus 2023, with a record £1 billion in revenue originating from the U.S.

Virgin pointed to operational challenges due to reduced availability of Rolls Royce Trent 1000 engines, but said it still managed to achieve a flight completion factor of 98.6%.

Continued cost discipline helped Virgin Atlantic reach its highest-ever operating profit (EBIT) of £230 million, up from £48 million in 2023, the airline said. Non-fuel costs reached £2 billion and non-fuel cost per ASK 3.99p, in line with 2023.

“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,” CEO Shai Weiss said. “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.”