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

Monday

Tuesday

Wednesday

Thursday

Friday

Airborne On ANN

Airborne 05.23.16

Airborne 05.24.16

Airborne 05.25.16

Airborne 05.26.16

Airborne 05.27.16

Airborne Hi-Def On YouTube

Airborne 05.23.16

Airborne 05.24.16

Airborne 05.25.16

Airborne 05.26.16

Airborne 05.27.16

AEA2016 LIVE Aero-TV: 04/27-0830ET, 04/28-1400ET, 04/29-1100ET

Sun 'n Fun 2016 Innovation Preview on Vimeo!

Sun 'n Fun 2016 Innovation Preview on YouTube!

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 05.25.16: Canada SeaPlane Regs, Blimp Downed, Citation Longitude Mated

Also: USAF Hassled, Hummel UltraCruiser, Helo Limits, FAA Video, Greg Connell Accident, Medical Helo Suit, Bombardier's 100th VistaJet Canada is proposing changes to their seaplane>[...]

Icon Steps Back, Admits Curtailed Production Plan

Finally Talking (And Still Hyping), Icon Production Plans Take A Big Hit The following is the text of a release from Icon Aircraft (bluster and all)... ANN Analysis and industry re>[...]

Solar Impulse 2 Is En Route To Lehigh Valley, PA

Atlantic Crossing Next Major Hurdle Solar Impulse 2 (Si2) departed Dayton (OH) International Airport with Bertrand Piccard at the controls, this morning at 0402 local time (UTC-4).>[...]

Icon Controversy Continues, But Icon Has Yet To Speak Up

The Company That Won't Answer Questions, May Finally Have To Do So ANN has been bombarded with info and reports concerning the health and well-being of the Icon Aircraft program...>[...]

ANN's Daily Aero-Linx (05.26.16)

Safety Management System (SMS) This FAA website was created as a public resource for those seeking to learn more about SMS within the aviation industry and the FAA.>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2016 Web Development & Design by Pauli Systems, LC