Virgin America loses $15.8 million in second quarter
Posted 28/08/2009
Virgin America narrowed its second-quarter loss to $15.8 million from the $64.4 million deficit suffered in the year-ago quarter, claiming that its "business model is right on track" and its service and amenities "provide an unrivaled value proposition at a time when consumers are more discerning than ever." Revenue rose 46.9% to $135.9 million against a 4.7% decline in costs to $147.3 million. Operating loss improved 81.6% to $11.4 million from $62.1 million in the second quarter of 2008. It enjoyed a 7.7-point improvement in load factor to 85.3% on a 47.9% hike in capacity to 1.7 billion ASMs. Unit revenue was down 0.6% to 7.99 cents and operating CASM plunged 35.6% to 8.66 cents, or 20.9% to 6.47 cents excluding fuel. VX launched service to Orange County during the quarter and finished equipping its fleet with Gogo inflight Internet in May (ATWOnline, May 21). Yesterday it said that "some flights and routes" see 20%-25% of passengers using the service. It currently serves nine destinations and will add Fort Lauderdale in November.
Originally published 28 Aug 2009 at: http://feeds.atwonline.com/~r/AtwDailyNews/~3/hBZsqOLjo9s/story.html
