New routes help Virgin achieve higher passenger numbers

Virgin Atlantic, one of the world’s leading airline groups, today announced that new routes and growth in its fleet of aircraft contributed to record sales during the last financial year. Core sales increased by 13% on the previous year, from £1.88billion to £2.14billion.

The number of passengers increased by 10.5%, to 5.1 million, as Virgin Atlantic expanded the number of destinations it serves around the world to include Dubai and Montego Bay. The UK-based airline also added extra services to New York, Las Vegas, the Caribbean, Mumbai, Cape Town, Shanghai and Orlando. By the end of this year, Virgin Atlantic will be serving 30 destinations, including new routes Chicago, Nairobi, Mauritius and Kingston.

Pretax profits, for Virgin Atlantic and its leading tour operator Virgin Holidays, but excluding Virgin Nigeria Airways, were £46.8million following a major investment programme in products including the Upper Class Suite, the new Premium Economy cabin, new route infrastructure, and the new London Heathrow Clubhouse, recently voted the world’s best airport business lounge by Skytrax. Pretax profits last year were £77.5million.

This year's results were boosted by a strong performance by Virgin Holidays, which expanded its offering in the Caribbean and other regions. It launched a number of new brochures including Family, Cruise and Indian Ocean and has also expanded its accommodation-only offering.

Sir Richard Branson, President of Virgin Atlantic, commented:

"The last financial year has seen Virgin Atlantic continue to strengthen the value of its business through investment in people, new aircraft, new routes and the quality of its product to customers both in the air and on the ground. We are building a sustainable business fit for the future of more environmentally-conscious travel. Our products have won a string of international awards for their innovation, part of the reason why we are seeing a substantial increase in the number of business travellers choosing Virgin Atlantic.

"Our profits would have been higher had it not been for the frustrating external issues many airlines have had to cope with, such as increased oil prices, the security alerts at Heathrow Airport in the summer of 2006, and the considerable administrative burden arising from the UK government’s decision to increase Air Passenger Duty at such short notice."

Substantial investment continued to help the expansion of Virgin Nigeria Airways, the start-up private sector flag carrier for Nigerian which Virgin Atlantic has a 49% stake. Losses at the carrier were £40.8million but sales increased sharply, from £24million to £83.6million. Virgin Nigeria Airways will continue to benefit from the need for increased air travel by consumers as the African economy expands.

With Virgin Nigeria Airways’ results included, Virgin Atlantic Group’s retained profits were £6.6million on turnover of £2.2billion. During the year, Virgin Atlantic Airways’ fleet size increased from 34 to 37 and staff numbers, including Virgin Nigeria Airways, rose from 8,939 to 9,877 as the Group continued to invest in its award-winning customer service and route infrastructure.

Virgin Atlantic expects to continue its substantial investment programme during 2007/08, with a focus on new Clubhouses worldwide and a dynamic new check-in experience for customers at London Heathrow’s Terminal 3. The new facility will open at the end of 2007, well before T5, enabling Virgin Atlantic passengers to reach the departure gate far more quickly and seamlessly.

For further information log onto Virginatlantic.com.