Virgin Atlantic will need to be “mindful and observant” of how the cost-of-living crisis develops, according to its chief commercial officer.
Speaking on the carrier’s inaugural Heathrow-Tampa flight, operated by its new Airbus A330neo aircraft, Juha Jarvinen said the airline had not yet seen a slowdown in sales but that “realistically there will be some impact in 2023”, which is why it has scaled back some of its US services.
Jarvinen has been encouraged by early load factors on the new route, which was announced in July, with capacity above 50% for December and above 70% for spring 2023, as well as by its “impressive” performance in the US market.
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“What’s exciting for us is that close to 40% of sales [for Tampa] so far are coming from the US, which is more than 10% higher than the share for our Miami service, showcasing the importance of the US origin,” he said.
The year-round service will initially operate four times per week before increasing to daily on November 28 which “demonstrates our confidence”, said Jarvinen.
Virgin Atlantic becomes the only carrier to connect Heathrow with Tampa, with British Airways’ service to the Florida city operating from Gatwick, which Jarviven said gives the airline a “unique advantage”.
He hopes the service attracts a mix of both leisure travellers keen to experience Tampa’s beaches – such as St Pete and Clearwater – as well as business travellers, as the airline looks to capitalise on the city’s growing reputation as a corporate hub.
“Tampa is the third fastest-growing metro area in the US and it’s increasingly seen as a destination for business; it’s a very attractive place for corporations because of the tax regime and weather,” he added.
“With that in mind we hope to attract more UK leisure travellers to Florida as well as US companies whose employees are looking to travel between London and Tampa. So far the results look promising.”
Not only is Tampa a “nice city to spend a few days in”, according to Jarvinen, but it’s also the “perfect access point to northern Florida” and close to the theme parks of Orlando.
He went on to say the carrier is “heavily dependent” on the trade to generate sales to Tampa, adding he expects healthy sales from MICE agents because the city is an “attractive conference location”.
Virgin Atlantic is currently working on its winter 2023 schedule, said Jarvinen, revealing there will be some “exciting news” about the programme announced in the coming weeks.
The carrier’s summer 2023 schedule will have around 20% more capacity than summer 2022, an uplift Jarvinen welcomed, but he noted: “There is of course a risk around the cost-of-living crisis, which is why we’ve decided to adjust some of our 2023 schedule.”