Virgin Atlantic made a pre-tax operating loss of £132 million in the last financial year, but said sales were now on the rise as it announced a new livery for the fleet.
Overall revenues fell by 8.6% in the 2009/10 - fiscal year, to £2,356.6 million.
Steve Ridgway, Virgin's CEO, said: "Along with the rest of the industry, we have just faced one of the toughest years in our history.
"However, the early action we took to deal with the losses from the worst recession on record, not only enabled us to protect the business; it provided us with a strong platform for growth this year."
The airline reduced its operating costs by 8% during the year and has created 300 new jobs in the UK, including 150 cabin crew roles.
Despite the loss, Virgin said it had seen an upturn in sales between March and May, with a 10% rise in revenue to £513 million.
In other news from Virgin, the carrier has unveiled a new livery for its planes, which will be rolled out across the entire fleet of 38 aircraft. The new look will also be used on all future signage, communications and advertising.
The Virgin Atlantic name was previously only on the front end of the fuselage, but will now cover the whole of the aircraft, with the new logo on the undercarriage as well. The flag carrying lady remains, albeit with a larger Union Jack
Ridgeway said: "Despite the most challenging economic conditions that we have encountered for some time, this is just one of many design projects that Virgin Atlantic has invested in.
"We have been working behind the scenes with British designers to re-ignite our brand and are developing new designs for the entire fleet of A330s due to come into service next year.
"Virgin Atlantic has a strong history of investing during downturns and we believe that our new livery and the forthcoming delivery of the Airbus A330-300 signals another period of growth for the airline."
Virgin is due to take delivery of five new A330 aircraft this spring.
The last time Virgin Atlantic launched a new livery was 2005.
www.virgin-atlantic.com