Virgin Atlantic has reported a full-year 2022 net loss of £342 million (US $425.7 million) on revenue of £2.9 billion, recovering 98 percent of 2019 levels. The carrier reported an underlying EBITDA of £310 million, and a loss of £206 million before tax and exceptional items.
On Wednesday (May 10, 2023) Virgin Atlantic announced their full-year financial results for the period ending December 31, 2022. The carrier reported a FY 2022 statutory net loss of £342 million (US $425.7) on revenue of £2.9 billion, recovering 98 percent of 2019 revenue. Virgin Atlantic reported a full-year 2022 underlying EBITDA of £310 million (US $386 million), and a loss of £206 million (US $256.4 million) before taxes and exceptional items. At December 31, 2022, Virgin Atlantic had cash totaling £399 million (US $496.7 million).
In Wednesday’s announcement, Virgin Atlantic’s CEO, Shai Weiss, said,
“2022 was Virgin Atlantic’s year of recovery and ramp up, when we reached new heights. While we ended the year well, it began with the new Omicron strain of the Covid-19 virus and aviation was faced with the return of restrictions on international travel. Thankfully, through the collective efforts of the industry, it was possible to prove that travel was safe, resulting in the removal of remaining restrictions. The devastating war in Ukraine dramatically affected fuel and energy prices and global supply chains. In parallel, inflation stoked a cost-of-living crisis, particularly felt by UK consumers as energy prices rocketed. These factors contributed towards losses, albeit significantly improved on 2021.
“By Spring, robust customer demand returned, fuelled in part by revenge travel and the return of the corporate traveller. Failings at Heathrow and complexities of ramp up pushed our operation to its limits but despite these challenges, I’m proud to say we came through the summer with industry-leading completion factors of 99.5%, getting customers to where they needed to be with fewer cancellations and delays than competitors. Testament to our talented teams on the ground and in the air, who go above and beyond to delight our customers day in, day out.
“Our amazing people are what make Virgin Atlantic special, and my thanks goes to them all for their continued support and commitment in making our recovery a success. Belief, determination, and conviction ensured our survival. In 2022, it allowed us to move into recovery by proving that our plan is working. In 2023, it is propelling us into our year of delivery, when we deliver for our people and our customers, ensuring everyone can take on the world, driven by the vision of becoming the most loved travel company and sustainably profitable.”
Also commenting on the carrier’s 2022 results, Virgin Atlantic’s CFO, Oli Byers, added,
“Our 2022 financial results reflect the first year of recovery following the immense challenges faced by our industry due to the Covid-19 pandemic. Our financial and operational performance demonstrates that our plan is working.
“Maintaining our commitment to customer experience throughout the pandemic ensured that when passenger demand returned, Virgin Atlantic was positioned to capitalise – and we delivered, with 2022 passenger revenues recovering to pre-pandemic levels.
“To deliver sustainable profitability requires a continuous focus on capacity and cost discipline. In 2022 we maintained this focus, realising the benefit from £300m in annual cost savings alongside improving our fleet utilisation. 2023 is set to deliver more flown sectors vs 2019 with four fewer aircraft.
“2023 will be a year of delivery as we build on the successful recovery achieved in 2022. We have cause for optimism as demand for travel has remained strong through the first quarter of 2023 balanced with continued macro-economic uncertainty. We anticipate growing underlying EBITDA in 2023 and are on track to return to profitability in 2024.”
Founded by entrepreneur Sir Richard Branson in 1984, Virgin Atlantic has brought innovation and the highest level of customer care to the airline industry. The carrier was voted Britain’s only Global Five Star Airline by APEX in 2022 for the sixth consecutive year. Headquartered in London, Virgin Atlantic employs over 7,500 team members worldwide. The airline currently serves 28 destinations across four continents. Alongside shareholder and Joint Venture partner Delta Air Lines, Virgin Atlantic operates a leading network between the US and UK, with onward connections to over 200 cities around the world. Virgin Atlantic will join the global SkyTeam alliance in early 2023, becoming the alliance’s first and only UK member airline.
Source: Virgin Atlantic