Virgin records 38% jump in profit

At a time when most airlines' profits are plunging, UK-based Virgin Atlantic Airways owned by billionaire Richard Branson, said yesterday its annual pre-tax profit for the 2007-2008 financial year was £60.9 million (Dh412.3m), up from £44m a year earlier, recording a jump of 38 per cent.

The airline's first-quarter 2008-09 pre-tax profits, meanwhile, went up to £23.5m, with sales up 16 per cent to £645.3m, from £558m in the same period the year before.

The airline attributed the increase in profits to a record number of business travellers besides fuller aircraft in the first quarter of the year, as it gained passengers from British Airways after the failure of BA's new terminal – Terminal 5, at London's Heathrow airport. The airline said its premium passenger numbers went up by 22 per cent during the year.

"The results were partly strengthened by a "T5 Effect", as Virgin Atlantic gained passengers from BA because of the ongoing problems at their new Heathrow terminal," the UK airline put it in its statement.

When asked how much Dubai route contributed to profit increase, Virgin Atlantic's spokesperson, without divulging the numbers, told Emirates Business: "The Dubai route has made an important contribution to our profits and has been a success since its launch. We continue to invest in the route."