Virgin Atlantic Airways has reported a £80.2 million loss for its last financial year as it was hit by higher fuel costs and an “uncertain economy”.
The airline’s operating loss for the year to the end of February 2012 contrasted with an operating profit of £18.5 million during the previous year.
Virgin managed to grow both revenue and passenger numbers during the year but had to cope with a 32 per cent rise in its fuel bill.
Virgin Atlantic chief executive Steve Ridgway said: “In an incredibly challenging market, we have managed to grow top-line revenues and fly more customers than last year.
“However, with the prevailing uncertainty in the economy, sky-high fuel prices and a 25 per cent hike in our air passenger duty fees, converting this sales growth into profit has not been possible.”
Virgin Atlantic increased revenue by 3 per cent to £2.74 billion while the number of passengers carried rose 2 per cent to 5.4 million.
“Despite this backdrop there can be no let up so to keep Virgin Atlantic at the forefront of airline customer innovation we have announced our biggest ever service and cabin investment programme,” added Ridgway.
Virgin Atlantic said there had been an “encouraging start” to its latest financial year with increased airline revenue and passenger numbers from March to the end of May compared to the same period in 2011.
The airline has launched new routes to Cancun, Mumbai and Vancouver in the last few months.