Virgin Atlantic confident of prospects despite big FY2009/10 loss

Having made a substantial profit of GBP60 million in 2008/09, one that put rival British Airways firmly in the shade, Virgin Atlantic had to report a loss of GBP132 million in 2009/10 - a loss equivalent to BA's, allowing for their comparative size. For the 12 months ended Feb-2010, Virgin reported an operating loss of GBP132 million, compared with a profit of GBP60 million the previous year as revenues fell by 8.6% to GBP2,537 million. This, despite airline operating costs reducing by 8%. The results were not directly influenced by cabin crew strikes at BA, which commenced in Apr-2010 but they could have been influenced indirectly, for example by passengers switching bookings in anticipation of a strike. If that was the case, the result is worse than it first appears.