Virgin Atlantic SWOT. Little Red's demise further re-emphasises the Atlantic and the Delta ownership

The decision by Virgin Atlantic Airways (VA) to close its fledgling UK domestic operation Little Red in 2015 came as no surprise. Its load factor in the 12 months to Jun-2014 was less than 42% and, although the trend was improving, this was clearly not sustainable. In spite of the likely losses at Little Red, VA said last month that it was on target to deliver an annual profit by the end of 2014, which would be its first in four years.

Historically an exclusively long-haul point to point carrier, it seems that it does not need to try to generate its own feed through loss-making short-haul activity.

This development comes as VA is set to take delivery of its first Boeing 787 Dreamliner. It also follows recently announced changes to the airline's long-haul network that will see it increase its already sharp focus on the part of the world that is included in its name - the Atlantic - and the US where its 49% owner, Delta resides. In this report, we consider Virgin Atlantic's main strengths, weaknesses, opportunities and threats.