Virgin Atlantic Ltd 2023 Financial Results Record Revenues Propel Airline’s Recovery

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. The 2023 financial, commercial and operational results illustrate that Virgin Atlantic is on course to return to profitability in 2024. 

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.”

Forward-looking statements:

Certain statements included in this announcement are forward-looking. These statements can be identified by the fact that they do not relate only to historical or current facts. By their nature, they involve risk and uncertainties because they relate to events and depend on circumstances that will occur in the future. Actual results could differ materially from those expressed or implied by such forward-looking statements. All forward-looking statements in this announcement are based upon information known to the company on the date of this announcement and speak as of the date of this announcement.

About Virgin Atlantic

Virgin Atlantic was founded by entrepreneur Sir Richard Branson in 1984, with innovation and amazing customer service at its core. In 2023, Virgin Atlantic was voted Britain’s only Global Five Star Airline by APEX for the seventh year running in the Official Airline Ratings. Headquartered in London, it employs 8,500 people worldwide, flying customers to 30 destinations across four continents throughout the year. Alongside shareholder and Joint Venture partner Delta Air Lines, Virgin Atlantic operates a leading transatlantic network, with onward connections to over 200 cities around the world. In February 2020, Air France-KLM, Delta Air Lines and Virgin Atlantic launched an expanded Joint Venture, offering a comprehensive route network, convenient flight schedules, competitive fares and reciprocal frequent flyer benefits, including the ability to earn and redeem miles across all carriers. Virgin Atlantic joined SkyTeam in March 2023 as the global airline alliance’s first and only UK member airline, enhancing the alliance’s transatlantic network and services to and from Heathrow and Manchester Airport. Virgin Atlantic has been pioneering sustainability leadership for more than 15 years, committing to Net Zero by 2050 and continuous action that reduces environmental impact. The airline operates one of the youngest and most fuel-efficient fleets in the skies, with an average age under seven years. In March 2024, Virgin Atlantic welcomed Wendy Darling, the 11th delivery of 12 A350s, and Ruby Rebel, the 5th of 16 A330-900neos to the fleet, continuing its transformation towards 100% next generation aircraft by 2028. In November 2023, the airline led a consortium to deliver the world’s first flight across the Atlantic on 100% Sustainable Aviation Fuel (SAF), demonstrating that 100% SAF can be used safely as a drop in fuel in existing infrastructure, engines and airframes. The need to scale production is imperative and Virgin Atlantic is committed to radical collaboration across the energy chain to support commercialisation ahead of 2030. For more information visit www.virginatlantic.com or via Facebook, Twitter and Instagram @virginatlantic.