Virgin America Releases Financial Results
based domestic airline, today reported the company’s past financial data for
the fourth quarter of 2007 and the first three quarters of 2008. Despite
record fuel costs and a challenging economic climate, the new airline reported
consistent and steadily growing unit revenue and load factors since its launch
in
(Logo: http://www.newscom.com/cgi-bin/prnh/20090123/VIRGINAMERICALOGO)
“These results are consistent with our expectations — with steady quarter
over quarter growth in unit revenue since launch,” said Virgin America
President and CEO
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.”
Key facts in the Form 41 release include:
— Start-up losses: The airline reported a
the first three quarters of 2008 on operating revenues of
— Strong load factors: 77.6 percent load factor in the second quarter of
2008 and 81.4 percent load factor in the third quarter of 2008.
— Significant top line progress: Quarter over quarter unit revenue
improved by 28 percent in the first quarter of 2008, 26 percent in the second
quarter and 10 percent in the third quarter. Despite a near doubling of
capacity, unit revenue in the third quarter was up over 75 percent versus the
fourth quarter of 2007, Virgin America’s first full operating quarter.
“We’re pleased with our progress to date, especially given fuel price
volatility and economic uncertainty in 2008. 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,” added Cush.
Cush was appointed President and Chief Executive Officer of Virgin America
in
these earnings results because they will become public later this week as a
result of the U.S. Department of Transportation’s (DOT) recent decision to
deny the Company’s request for confidential treatment of its previously filed
financial information. Virgin America and other small carriers sought
protection of this data because it is competitively sensitive and ripe for
misuse by the legacy carriers. DOT did provide confidential treatment for
this type of airline data until 1991, and it continues to afford confidential
treatment for international carriers.
Virgin America is one of the fastest growing U.S. carriers of all time,
with a new 28-aircraft Airbus A320-family fleet. The airline offers flights
from: SFO to LAX, SFO to JFK, SFO to SAN, SFO to IAD, SFO to LAS, LAX to JFK,
LAX to IAD, SFO to SEA, SEA to LAX, JFK to LAS, starting on
– BOS to LAX and BOS to SFO, and starting on
About Virgin America: Launched in
Virgin America offers guests attractive fares and a host of innovative
features aimed at reinventing air travel. In just a little over a year
flying, the airline has won a list of travel industry best-in-class awards
including “Best Domestic Airline” in Conde Nast Traveler’s 2008 Readers’
Choice Awards and in Travel + Leisure’s World’s Best Awards. The airline’s
brand new Airbus A320-family fleet is one of the youngest and most fuel
efficient in the U.S. The carrier has announced service to nine destinations,
with full
County
http://www.virginamerica.com.
EDITORS NOTE: Virgin America is a U.S. owned and controlled airline and
an entirely separate company from Virgin Atlantic. Sir
SOURCE Virgin America