| Journal: TWUK | Section: |
| Title: | Issue Date: 05/06/00 |
| Author: | Page Number: 23 |
| Copyright: Other |
Virgin Express on efficiency drive
VIRGINExpress has blamed a strong dollar and increased fuel prices for almost trebling its losses in the three months to March 31.The low-cost airline lost £8.3m compared to £3.1m in the same period last year.
Revenues at Sir Richard Branson’s airline increased slightly to £35.9m from £32.4m but the combination of currency, fuel prices and a decrease in loads forced losses up.
An efficiency drive has seen the Brussels-based carrier axe flights from Stansted to the Belgian capital and those from Rome to Barcelona and Madrid. Some charter services will be dropped this winter. The airline has also shifted staff and aircraft engineering services to Shannon in the west of Ireland to combat high costs in Belgium.
A new service between Gatwick and Shannon has been launched and frequencies increased from Brussels to Nice and Copenhagen.
Virgin Express’ poor results reflect the carrier’s failure to tap into the growing low-cost European market.