Virgin Atlantic expects profitable 2023

LONDON - Virgin Atlantic 2021 results reflect an "intensely challenging year" for the airline and the continuation of the "immense challenges" the industry faced due to the Covid-19 pandemic. Management expects conditions to improve in 2022 and to turn Virgin Atlantic to a profit by 2023.

Virgin Atlantic reported total revenue of GBP 928 million - up GBP 60m on 2020, yet down from GBP 9 billion in 2019 - and an EBITDA loss of GBP 166 million.

"2021 started with hopes for recovery, following the successful GBP 1.2bn solvent recapitalisation of the airline in September 2020," Virgin Atlantic CEO Shai Weiss said. "However, with ongoing restrictions and the rapid spread of the Delta and Omicron variants, customer demand was materially impacted."

Virgin Atlantic ended the year with a cash position of GBP 580 million, delivered by raising GBP 670 million new capital, including GBP 400 million shareholder investment completed in December 2021.

"2022 will be a year of transition as we move from survival into recovery and capitalise on the return of customer demand," Virgin Atlantic CFO Oli Byers said. "We anticipate a return to profitability in 2023, driven by a recovery in air travel demand and more than GBP 300m annual cost savings, already delivered."