Virgin America Releases Financial Results After DOT Forces Issue | Aero-News Network
Aero-News Network
RSS icon RSS feed
podcast icon MP3 podcast
Subscribe Aero-News e-mail Newsletter Subscribe

Airborne Unlimited -- Recent Daily Episodes

Episode Date

Airborne Unlimited-
Monday

Airborne-Unmanned w/AUVSI-
Tuesday

Airborne Unlimited-
Wednesday

AMA Drone Report-
Thursday

Airborne Unlimited-
Friday

Airborne On ANN

Airborne 02.19.18

Airborne-UnManned 02.20.18

Airborne 02.21.18

AMA Drone Report 02.22.18

Airborne 02.23.18

Airborne-YouTube

Airborne 02.19.18

Airborne-UnManned 02.20.18

Airborne 02.21.18

AMA Drone Report 02.22.18

Airborne 02.23.18

Tue, Feb 03, 2009

Virgin America Releases Financial Results After DOT Forces Issue

Airline Posted $175 Million Net Loss Through Q3 2008

They didn't want to do it, and argued with the Department of Transportation they shouldn't have to... but on Tuesday, upstart low-cost carrier Virgin America revealed the company's past financial data for the fourth quarter of 2007 and the first three quarters of 2008.

As expected by analysts, Virgin American posted an overall operating loss. However, the $175.4 million net loss for the first three quarters of 2008, on operating revenues of $259.6 million, could be viewed as a respectable showing for a new airline, competing in a tough market and slumping economy.

Also in the 'respectable' category is Virgin America's reported 77.6 percent load factor in the second quarter of 2008, and 81.4 percent load factor in the third quarter of 2008... signs the airline is growing in popularity, which should translate to higher revenues down the line.

"These results are consistent with our expectations -- with steady quarter over quarter growth in unit revenue since launch," said Virgin America President and CEO David Cush. "This is an industry with very high start-up costs and where large first year losses are common. We're confident in our business model and are in a strong position as a well-financed start-up with solid revenue growth and load factors, a modern, fuel efficient fleet, a maturing route network, and award-winning service the public has embraced.

"We're pleased with our progress to date, especially given fuel price volatility and economic uncertainty in 2008," Cush continued. "We believe our award-winning service, strong financing, streamlined cost structure and impressive revenue performance is the right recipe at a time when consumers are more discerning than ever as to where they'll spend their hard-earned dollars. We're in this for the long haul and are fully funded through our projected profitability date -- a strong indication of our investors' confidence in our business model."

The DOT recently denied Virgin America's request to keep its financial information private. Virgin argued it shouldn't be forced to reveal that data, as the airline is a privately-held company and that information is "competitively sensitive and ripe for misuse by the legacy carriers." Virgin also noted other small carriers have been able to guard their financial data, as have international carriers flying to the US.

Given the DOT's past history with Virgin America, however -- as ANN reported, the airline's start date was held up for nearly a year due to questions over foreign ownership concerns -- it's not particularly surprising DOT forced the issue.

FMI: www.virginamerica.com, www.dot.gov

Advertisement

More News

Airborne-Unmanned 02.20.18: USMC InstantEye, Raleigh Reconsiders, Battle Drones

Also: Fortem DroneHunter, Solar-Powered Rover, Drone Mkt Worth $48.88B, MQ-25 Partnerships InstantEye Robotics has received a substantial order from PMA-263, the Navy and Marine Co>[...]

Airborne 02.21.18: AEA Report, Aerocor Eclipse Program, WWII Airman Recovered

Also: Gulfstream To Expand, Med-Trans Partners, FAA SAIB On AT-6, Passenger Gas Curtails Flight The AEA has released its 2017 year-end Avionics Market Report. Total worldwide busin>[...]

Airborne 02.23.18: Textron Nixes TTx, GAMA $Billing$, Bronco II

Also: Airliner Evacuation, Tuskegee Airman Event, Sikorsky Combat Rescue Helicopter, FreeFlight Txp Integration Textron Aviation has apparently ended production of the Cessna TTx a>[...]

Airborne 02.23.18: Textron Nixes TTx, GAMA $Billing$, Bronco II

Also: Airliner Evacuation, Tuskegee Airman Event, Sikorsky Combat Rescue Helicopter, FreeFlight Txp Integration Textron Aviation has apparently ended production of the Cessna TTx a>[...]

Bronco II Aircraft Launched For The U.S. Market

New Airplane Based On The Bronco AHRLAC Aircraft Bronco Combat Systems (BCS) USA has introduced the Bronco II Aircraft. The Bronco II, which is based on the AHRLAC aircraft (Advanc>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2018 Web Development & Design by Pauli Systems, LC