Virgin America closes 3Q facing stiff headwinds for 2012, but still breaking even

As most of the US airline industry was collectively earning over USD1 billion in the third quarter, Virgin America joined Southwest and American in posting losses. The San Francisco-based carrier posted USD3.3 million in losses - a paltry sum compared to the USD140 million loss at Southwest, and relatively positive news considering the airline's overall financial performance.

The story for Virgin America was much the same as for the rest of the US industry and is likely to be repeated in the fourth quarter and the new year. That story is a frustrating one of rising revenue on falling profits, meaning costs often outstripped revenues.

For its part, Virgin posted an operating profit of USD16.2 million for the third quarter resulting in a 5.6% operating margin, the carrier said, which was down 4.8 points from 3Q2010, when Virgin posted its first net profit, indicating the carrier is still working towards sustainable profitability.