The 2023 financial, commercial and operational results illustrate that Virgin Atlantic is on course to return to profitability in 2024.
Virgin Atlantic Ltd (Virgin Atlantic) has released its annual financial results for the year ending 31st December 2023. Results reflect progress made in a year of sustained customer demand, as the airline capitalised on continued desire for premium leisure air travel and holidays. Virgin Atlantic reported record total revenue of £3.1 billion, up £265 million versus 2022. Continued cost discipline, combined with enhanced fleet utilisation, contributed towards record Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) of £352 million. Earnings Before Interest and Taxes (EBIT) of £80 million surpassed 2019 results, achieving a key milestone on the path to sustainable profitability.
Losses before tax and exceptional items narrowed to (£139) million from (£206) million in the previous year and Virgin Atlantic is on course to return to profitability in 2024. Virgin Atlantic ended the year with a robust cash position of £406 million, up from £399 million in 2022. The end of 2023 marked the midpoint of Velocityx, the airline’s four-year strategic plan, supporting its mission to become the most loved travel company and sustainably profitable.
Full Year 2023 Financial Results Summary
- Virgin Atlantic carried 5.3m passengers in 2023, with a load factor of 77%
- Passenger capacity (ASKs) ended the year 16% higher than 2022 with 23,720 sectors flown on 41 aircraft – up from 23,551 sectors in 2019 on 45 aircraft, demonstrating continued growth in fleet utilisation
- Due to robust customer demand for premium leisure air travel and holidays, 2023 passenger revenue was reported at £2.4 billion – the highest on record and up £323 million versus 2022, despite corporate travel being slower to return to pre-pandemic levels
- Industry leading operational performance resulted in a flight completion factor of 99.7%, a punctuality score at Heathrow Airport ten points ahead of industry average, and for a seventh consecutive year, recognition as Britain’s only Five Star Airline from APEX
- With new routes launched to Turks & Caicos and the Maldives, and the return to Dubai, Virgin Atlantic Holidays met sustained demand for premium sun destinations, carrying 231k holiday makers in 2023
- Virgin Atlantic Cargo delivered revenue of £196m, operating 158k tonnes of cargo, down from 191 tonnes in 2022 as markets normalised post pandemic with lower yields
- Continued cost discipline resulted in total airline non-fuel costs of £1.8bn and an airline nonfuel cost per ASK (NFCASK) of 3.98p, up from 3.76p in 2022
- £80m EBIT surpassed 2019 performance, reflecting the combination of record revenue performance, enhanced fleet utilisation and disciplined costs
- Virgin Atlantic ended the year with an improved total cash position of £406m, after refinancing £41m and paying down more than £98m of debt
- In November the airline operated Flight100, the world’s first transatlantic flight on 100% Sustainable Aviation Fuel. Following the flight, Virgin Atlantic was awarded Gold rating by the Centre for Aviation (CAPA) in its 2023 Airline Sustainability Benchmarking
- Virgin Atlantic was recognised with #1 ranking in Newsweek’s Most Loved Workplaces 2023, for a second consecutive year.
Shai Weiss, CEO, Virgin Atlantic, commented: “In 2023, we capitalised on continued strong demand for leisure air travel and holidays, which shows that desire for experiences and travel remains, resulting in record revenues. A loss is never satisfactory; however, our performance and results illustrate that we have made really good progress in 2023, the plan is working, and Virgin Atlantic is on course to return to profitability in 2024.
“My gratitude goes to our teams, who go above and beyond to deliver an amazing experience, making our customers smile every day. At the midpoint of Velocityx, our four-year strategic plan, and as we gear up to mark 40 years of flying in June, our commitment and belief in our vision of becoming most loved travel company and sustainably profitable is stronger than ever. 2024 is the turning point for Virgin Atlantic, the culmination of our transformation and the year we make it count.”
Oli Byers, CFO, Virgin Atlantic, commented: “2023 financial results reflect a year when our team delivered record revenue and a return to pre-pandemic EBIT performance. Importantly we narrowed losses and set up a return to profitability in 2024. “Our financial, commercial and operational performance demonstrates that our plan is working, despite the challenges of inflation, rising interest rates, and higher fuel and energy prices. “In 2023, we flew more sectors than 2019 with four fewer aircraft, illustrating the efficiency of our fleet today. Combined with continued cost discipline and protecting cash, these actions ensure we are positioned to return to profitability in 2024. As customer demand for travel endures, we will go further this year by welcoming six new aircraft and capacity growth of 12%, while maintaining cost discipline as always, targeting record revenues and operating profit.”
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
