Virgin Atlantic flying high as annual profits double (The Herald, 27 Jun 2006, Page 16)

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Virgin Atlantic flying high as annual profits double

The Herald
27 Jun 2006

RICHARD Branson’s Virgin Atlantic – which triggered a price-fixing inquiry into archrival British Airways – posted a doubling in yearly profits yesterday after attracting more business travellers.
Their annual results came amid a UK–US investigation into alleged cartel activity over airline fuel surcharges, launched following a tip-off by Virgin to British regulators.
A US law firm has already started a class-action lawsuit against airlines over pricefixing allegations, according to reports. But an industry source said yesterday the action was not being taken as a serious threat for the carriers.
Virgin, which competes with British Airways for premiumpaying passengers, said it carried 10% more business customers in the year after introducing new upper-class facilities.
The airline – 51%-owned by Branson and 49% by Singapore Airlines – also launched new routes to India and the Caribbean, which helped offset a 30% jump in fuel costs and tough transatlantic competition.
Profit before tax and exceptionals for the year ending February 28 rose to £41.6m from £20m a year ago, the airline said. Revenues increased 17% to £1.9bn and passenger numbers rose 11% to 4.9 million.
Virgin approached the Office of Fair Trading about alleged conversations between a BA executive and one of its staff last year to sound out plans to increase fuel surcharges on long-haul flights, a source said. The civil and criminal probe into an alleged cartel was announced last week after... read more...