Loading

Virgin America achieves a second year of profitability despite revenue pressure in key markets

Analysis

Virgin America joined most US airlines in recording solid financial results for 4Q2014 and CY2014 - marking the first time it has reported its performance as a publicly traded company after completing an initial public offering in late 2014.

The airline delivered solid top-line revenue growth in each period, but faced some cost headwinds stemming from increased salaries and higher airport costs. Compensation expenses will continue to pressure Virgin America's unit costs for CY2015.

Virgin America is also facing some revenue challenges in the New York transcontinental market and in Dallas Love Field driven by significant increases in industry capacity. The airline believes that those two markets should return to a more normalised state at some point, but it does appear the competitive dynamics shaping those markets will remain intact at least through 1Q2015.

Read More

This CAPA Analysis Report is 1,932 words.

You must log in to read the rest of this article.

Got an account? Log In

Create a CAPA Account

Get a taste of our expert analysis and research publications by signing up to CAPA Content Lite for free, or unlock full access with CAPA Membership.

InclusionsContent Lite UserCAPA Member
News
Non-Premium Analysis
Premium Analysis
Data Centre
Selected Research Publications

Want More Analysis Like This?

CAPA Membership provides access to all news and analysis on the site, along with access to many areas of our comprehensive databases and toolsets.
Find Out More