Virgin Atlantic reported a pre-tax loss of £28.4 million for 2017. The annual financial report highlighted 1% fall in revenue to £2.7 billion and decline in passenger numbers to 5.3 million – down from 5.4 million in 2016.
The UK based carrier recorded profits for the past three consecutive years totalling £56 million, but this fiscal year losses are attributed by reversal of sterling’s depreciation against the dollar, difficulty in accessing Rolls Royce engine parts for its Boeing 787 fleet, and Hurricane in Caribbean distributed flight operations. said Virgin.
However, Virgin Atlantic’s tour operator brand Virgin Holidays saw a 1.5% increase in passenger numbers year on year to 397,000 and a pre-tax profit of £15.5 million.
US carrier Delta Airlines has 49% stake in Virgin Atlantic and Air France-KLM is poised to take a 31% stake, pending regulatory approval expected next year, leading to a second transatlantic JV.