Virgin Atlantic benefits from botched Terminal 5 opening

Source: Supply Chain Digital

Date :26/08/2008 16:08:57

Virgin Atlantic Airways Ltd has swungs to a first quarter profit as it added new destinations and gained passengers from its rival British Airways.

Pretax profit in the three months ended May 31 was £23.5 million, compared with a pretax loss of about £2 million a year earlier, the London-based airline, said today, August 26.

Sales rose 16 percent to £645.3 million.

Virgin Atlantic added passengers in March after the dismal opening of London Heathrow's Terminal 5 forced British Airways, the terminal's sole occupant, to cancel more than 600 flights.

The airline serves 30 destinations and added new routes, including London Heathrow to Chicago and to Nairobi, Kenya.

Chief Executive Steve Ridgway said that the outlook for the aviation industry “remains pretty overcast” against the backdrop of high oil prices and weakening consumer demand, but added that Virgin Atlantic is “well-placed to succeed over the coming months”.