Virgin Atlantic upbeat despite headwinds

Virgin Atlantic has tumbled into the red for the first time in four years after taking a hit from the Brexit-buffeted pound, hurricane disruption and engine woes that grounded some of its aircraft.

The carrier, which was founded by Sir Richard Branson more than three decades ago, was left nursing an underlying pre-tax loss of £28.4 million in 2017 against profits of £23m the year before.

The shortfall came amid “significant operational challenges and a difficult economic backdrop,” according to the airline, which carried 100,000 fewer passengers last year, at some 5.3 million.

Its load factor – a key industry measure for how full its planes were – dipped to 78.3 per cent from 78.7 per cent in 2016.

Chief executive Craig Kreeger said: “There were three big external issues that we had to deal with in 2017; the full-year impact of a weak sterling relative to the dollar, an industry-wide engine supply issue and severe hurricane disruption in the Caribbean and US. While some of these challenges will remain prevalent in 2018, we will stay focused on delivering for our customers.”

The carrier is now hoping the launch of three economy products will help lead its fight back. The new options – economy delight, economy classic and economy light – are designed to offer customers more choice and a lower price point.

Virgin Atlantic, which is now 49 per cent owned by Delta Air Lines, is headquartered in London and employs more than 9,000 people globally. 0 Sir Richard Branson set up the airline 34 years ago