Virgin Atlantic achieved a “turning point” by returning to profit last year for the first time since the pandemic.
The airline reported profit before tax and exceptional items of £20 million as revenues rose by £183 million to a record £3.3 billion in the 2024 calendar year.
This was fuelled by passenger capacity growth of 7.6%, continued demand for business and premium leisure travel and the launch of ‘Unlimited Availability’ reward seats for members of Flying Club, according to the carrier’s annual results.
The improved performance over 2023 came as Virgin Atlantic strengthened its balance sheet, ending the year with a cash position of £443 million – up £37 million – inclusive of paying down £174 million of pandemic-related debt.
The airline has paid down £500 million of debt incurred during the pandemic since 2022 and last year completed £485 million of debt financing on improved terms.
“Continued cost discipline contributed to the airline achieving its highest ever earnings before interest and tax (EBIT) of £230 million, more than quadrupling the £48 million delivered in 2023 and bolstering progress towards sustainable profitability,” the airline reported.
Sister tour operation Virgin Atlantic Holidays achieved revenue of £517 million, up 10% over 2023 levels as it carried 255,000 holidaymakers.
Virgin Atlantic carried 5.6 million passengers in 2024, with a load factor of 77.3%, as it operated a fleet of 43 aircraft.
A flight completion factor of 98.6% was achieved despite “operational challenges” due to reduced availability of Rolls Royce Trent 1000 engines.
Chief executive Shai Weiss (pictured) said: “Our performance in 2024 marked a big step forward in our mission to become the most loved travel company and sustainably profitable, with record revenues and operating profit achieved in our fortieth 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.
“Our teams do their absolute best, every day, to make our customers smile. It’s that simple. I’m so proud to see their great efforts result in success, from the rollout of Unlimited Availability reward seats and unification of our flight and holiday business on virginatlantic.com, to growth in India with the launch of flights to Bengaluru.”
He added: “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 2025, we dare to imagine an even better future. Let’s make it happen.”
Chief financial officer Oli Byers said: “2024 financial results reflect a second consecutive year of our teams delivering record revenues coupled with sustained cost discipline.
“Reporting a record EBIT performance and return to profitability in our fortieth year is testament to the enduring commitment of Virgin Atlantic’s people.
“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.”