By Favour Nnabugwu
Virgin Atlantic in its financial results for 2020 lost $911m pre-tax for 2020 ddueto the conditions of the pandemic, figures are down compared to 2019.
Across Virgin Atlantic, Virgin Holidays, and Virgin Atlantic Cargo, the reported revenue for the year is £868 million (~$1.2 billion). While this figure might seem like a lot, this is down from £2.9bn (~$4.01bn).
Notably, Virgin Atlantic has been going through a billion-dollar restructuring plan. This privately funded plan was completed in September 2020 and was based on borders opening in time for spring 2021.
With the aviation industry still heavily restricted in the new year, the airline has also been in talks this year about a £160 million (~$223m) support package with its shareholders and creditors, which followed a $230 million financing on two Boeing 787s.
The airline previously stated that it looks to expects to return to profitability in 2022. Until then, it is confident that it has sufficient liquidity to trade through until restrictions ease and passenger activity increases. Nonetheless, 2020 has been Virgin Atlantic’s most challenging year.
“At the start of 2020, we were on course to return to profitability, however, few could have predicted the scale and impact of the global crisis that the Covid-19 pandemic would bring. Ongoing travel restrictions, border closures and country-wide lockdowns reduced demand for travel and drove unprecedented levels of customer refunds, with over £600 million processed by Virgin Atlantic during 2020,” Virgin Atlantic CEO Shai Weiss shared in a statement.
“While we welcome the adoption of a risk-based traffic light framework and that progress is being made towards the resumption of international travel at scale from 17 May, it doesn’t go far enough, given that economic recovery and 500,000 UK jobs are at stake. Now we need certainty that the framework will allow for a phased removal of testing and quarantine.”