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Virgin Atlantic announces a loss for 2018

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Virgin Atlantic announced a £26m loss for 2018 yesterday, following a £49m loss in 2017.

Underlying numbers were more promising, with revenue rising by 5.8% to £2.78bn, passenger numbers growing by just under 5% to 5.4 million and revenue per customer rising by 1.7%.

The two core issues were the weakness of Sterling, given that jet fuel is priced in US$, and the continuing problems with the Boeing 787-9 fleet, much of which remains grounded due to problems with the Rolls-Royce engines.

Virgin Atlantic new A350 upper class

Whilst we didn’t cover it on HfP, Rolls-Royce faced a new round of engine issues last week when Singapore Airlines grounded two Boeing 787-10 aircraft due to signs of engine turbine blade cracking.  This implies that the issue is not unique to the Boeing 787-9 fleet.

Virgin Atlantic has warned that it does not expect to make financial progress in 2019 but that it should break even in 2020 and then return to profitability.  The new A350-1000 aircraft are substantially cheaper to fly than the older aircraft they replace.

Here is a link to the 2018 Annual Report if you want to find out more.

One interesting fact – over 100,000 people have signed up to the new Virgin Atlantic credit cards in the first 12 months and over £1bn has been spent.


How to earn Virgin Points from UK credit cards

How to earn Virgin Points from UK credit cards (April 2024)

As a reminder, there are various ways of earning Virgin Points from UK credit cards.  Many cards also have generous sign-up bonuses.

You can choose from two official Virgin Atlantic credit cards (apply here, the Reward+ card has a bonus of 15,000 Virgin Points):

Virgin Atlantic Reward+ Mastercard

15,000 bonus points and 1.5 points for every £1 you spend Read our full review

Virgin Atlantic Reward Mastercard

A generous earning rate for a free card at 0.75 points per £1 Read our full review

You can also earn Virgin Points from various American Express cards – and these have sign-up bonuses too.

American Express Preferred Rewards Gold is FREE for a year and comes with 20,000 Membership Rewards points, which convert into 20,000 Virgin Points.

American Express Preferred Rewards Gold

Your best beginner’s card – 20,000 points, FREE for a year & four airport lounge passes Read our full review

The Platinum Card from American Express comes with 40,000 Membership Rewards points, which convert into 40,000 Virgin Points.

The Platinum Card from American Express

40,000 bonus points and a huge range of valuable benefits – for a fee Read our full review

Small business owners should consider the two American Express Business cards. Points convert at 1:1 into Virgin Points.

American Express Business Platinum

40,000 points sign-up bonus and an annual £200 Amex Travel credit Read our full review

American Express Business Gold

20,000 points sign-up bonus and FREE for a year Read our full review

Click here to read our detailed summary of all UK credit cards which earn Virgin Points

(Want to earn more Virgin Points?  Click here to see our recent articles on Virgin Atlantic and Flying Club and click here for our home page with the latest news on earning and spending other airline and hotel points.)

Comments (96)

This article is closed to new comments. Feel free to ask your question in the HfP forums.

  • Aliks says:

    Oh well, 5000 Jet points lost. . .
    On a more serious note, how cautious should we be about booking internal flights with the smaller Asian airlines?

    Sounds like booking 6 months in advance might be risking it.

    • ian says:

      one might ask the same about smaller british airlines!

      ian. 🙂

    • Nigel the Pensioner says:

      They are so cheap that you wonder how they stay in business IF they pay for fuel in USD. That said, they do book up quickly BUT they also cancel flights very readily – or at least change times by several hours at a whim.
      Be aware that if you want to use an interline luggage through booking facility to your final destination, then you need to use national carriers and not budget carriers. Not playing this game on a return from Cambodia via Vietnam and Qatar to the UK could have cost $50 for a visa (having been in Vietnam already in the recent weeks for 15 days) to collect luggage in SGN simply to recheck it through to the UK!!
      I would suggest paying up for national carriers who seem (in SE Asia anyway) to fly most of the common routes internally, more reliably and more punctually. In particular, avoid Malindo Air and their £19 fares at all costs if you want a pleasant journey around Malaysia.

      • Crafty says:

        Quite liked my Malindo flight personally. Meals were included IIRC. Seemed a step above budget carriers.

        Although AirAsia is a budget carrier and in many ways an excellent airline too

  • Colin MacKinnon says:

    Maybe one should book it now with good travel insurance?

  • MLM says:

    Virgin Atlantic are VS.

    • Nick says:

      VA are the initials or an abbreviation for Virgin Atlantic which Rob Burgess has understandably used in his heading for this article. VS is the IATA code for Virgin Atlantic…..and whilst we are at it VIR is the ICAO Code and 932 is the Prefix Code for Virgin Atlantic.

      • Mike says:

        I have been to meetings at work like this – where I don’t understand a word. (I really shouldn’t be in charge !)

        • David says:

          Except nobody actually uses VA to refer to Virgin Atlantic, because it means Virgin Australia. When I saw the headline, I wondered why HfP had decided to start reporting on the fortunes of their Australian cousins…

          VS in unambiguous – VA is just confusing.

          • Rob says:

            80% of our readers (admittedly 5% of commentators) are not in the aviation geek category who can recite airline codes.

            We NEVER use them in articles. Have you never noticed?

        • Lumma says:

          Only aeroplane nerds think in terms of airline codes, especially if they’re not obvious.

          It’s the same with obscure airport codes

        • Sussex Bantam says:

          Glad that’s not just me Mike !

        • David says:

          @Rob – I hadn’t noticed that you “NEVER” use airline codes in articles, because you do! The very next article about JetBlue mentions “BA”… 😉

        • Crafty says:

          BA is a logical abbreviation, whether or not it’s the “airline code” too is irrelevant!

      • Andrew says:

        I don’t remember anyone demanding that Virgin Trains East Coast (often referred to as VTEC) were referred to by their correct internal railway coding of “GR” when there were various Amex or Nectar offers on…

        • David says:

          That’s because writing VTEC was clear anyway. There’s no problem with making an editorial decision to avoid airline codes, but then you need to find an alternative that readers can understand without checking the HfP style guide.

          I’d argue that writing “Virgin reports loss” on here would lead most people to understand that we were talking about VS, even though it’s technically not accurate either.

          • Rob says:

            When you look at HFP, you see it as something alongside Flyertalk, Boarding Area etc etc. That isn’t what it is, and it isn’t what it was created to be.

            We have 30,000 regular daily readers, Dave, of whom 25,000 are ‘general’ types who do not read any other airline or frequent flyer sites. You (and me) are in the niche.

            I promise you that my wife (BA Gold from work travel, holder of a 7 figure Virgin balance) does not know a single airline code.

        • Doug M says:

          She must be able to have a good guess at the BA one…… no?

        • Shoestring says:

          heh heh – I prefer to write Gatwick as I usually get that wrong, is it LGW?

          LHR – I guess 99% of us know that one – with the others I tend not to bother to try to remember the 3 letter code as for the sake of typing a few more letters, you’re leaving quite a few people scratching their heads & it’s wasted effort

    • Speedbird676 says:

      Having lived in Australia, I immediately read Virgin Australia when I see VA.

      I work at LGW and they erroneously call Virgin Atlantic VA, too!

      • guesswho2000 says:

        Haha same, I read it as Virgin Australia, but my brain autocorrected it as being unlikely (though not impossible) that a UK site would be covering an airline which flies nowhere near Europe!

      • Crafty says:

        But it isn’t erroneous at all. Imagine if a national newspaper wrote “Virgin Atlantic (VS)” and then called it VS for the rest of the article. 99% of readers would be completely bemused.

        • Save East Coast Rewards says:

          Surely it’s better to avoid the initials if it can also mean something else in the same industry? That said, in this case it’s not exactly a big deal, the context is made clear in the article. This was just shortened to stop the headline being too long.

        • guesswho2000 says:

          At LGW, an airport, it’s very much erroneous. That’s like referring to LGW as GTW, its train station code, or LON, which is technically correct, but also covers LHR, STN, LTN, LCY…

        • guesswho2000 says:

          And they wouldn’t be bemused at all, by the article clarifying what VS meant in the headline, they’d know exactly what it was referring to, even if they didn’t know why it was referred to as that.

        • John says:

          I wonder why nobody refers to Qatar Airways as QA then? QA is the ISO 2-letter country code after all.

          Basically everyone in Hong Kong knows that CX is the airline code, but seen people on here call it CP (which was Canadian Airlines (originally Canadian Pacific), died around 2000).

          I bet 99% of Los Angeles residents know their airport code is LAX not LOS (Nigeria).

      • Alan says:

        Same, I read it as Virgin Australia straight away. As long as we at least stick to VS in the comments 😛

    • JJ says:

      Might be a good idea to learn a few airline codes if planning to use code share flights. Just looking at my boarding passes issued yesterday by Delta (DL/DAL) on my Virgin (VS) ticket to the UK. The flight number is given as VSxxxx rather than DLxxxx. Only at the bottom in small print is the actual DL flight number given. When running for a very tight connection (43 minutes- not recommended!) knowing your “local” flight number can be very useful when asking directions or looking at departure boards.

  • LESLEY C GREENE says:

    West Coast Line…always in my experience has worked well and certainly the ONLY line with few problems, comfortable trains and punctual at destinations. I have always said it was the model to follow. PLEASE resolve this issue and keep the franchise with Virgin!

    • Nick_C says:

      And who is going to pay for the Pension Fund Deficits?

      The new franchise holder will be using the same trains. The staff will be TUPE’d across. There are contractual standards. The only change will be the branding.

      Virgin mainly charge for their brand name to be used. They don’t actually run much themselves.

      • Andrew says:

        It doesn’t matter who holds the franchise, there are only two sources of income for rail services:-

        Government subsidy
        Passenger fares

        The chap on R4 this morning was quite vigorous in his defence, he managed to deliver a Malcolm Tucker style performance without the dirty mouth.

        I will definitely miss Virgin when they go, they have a more customer focussed attitude towards train fares.

        When I travel from Oxford to Scotland, I have a choice of travelling to Edinburgh or Glasgow to reach my destination. If I leave Oxford before 9am and buy a return ticket to Edinburgh, it costs £332.30 priced by Cross Country. If I leave Oxford before 9am and buy a return to Glasgow, it costs £153.20 priced by Virgin. The only difference between the two journeys is that in the final 30 minutes, one train goes straight on at Carstairs the other takes a right turn.

        • John says:

          I don’t know who is paying those extortionate XC fares (looks like you might be, but most people would be on advances) but you should be able to halve that by splitting at the first station you stop at after 0930, as well as several other points (that isn’t a journey I would ever make so I’m not going to look it up just for an HFP comment)

    • Crafty says:

      +1

  • Thomas Howard says:

    Has anyone not had a letter from Lloyds regarding the changes to the Avios Rewards Card? I’ve still not had anything and as much as I don’t want the card to change I was hoping to take advantage of the new balance transfer rate from my IHG after I pay my corp tax.

    • John says:

      I haven’t, but I didn’t get any letters for over a week (something dodgy was going on at the sorting office!) so it might have been lost with those…

    • Sussex Bantam says:

      Nothing for me yet – two cards both continue to operate.

    • Alex W says:

      Don’t recall receiving mine yet either.

    • Tom1 says:

      I have – and I had to read it twice.
      I thought the letter was advising two months notice before the upgrade voucher offer ended – but my letter says that I can keep spending until Feb 2020 toward my next cabin upgrade voucher.

      Is that different to others, or did I misunderstand the article?

      • KevMc says:

        Myself and my wife both had the same letter. I read it to mean you have until the end of your current card year to hit £7k spend and trigger the voucher, but you only have 60 days left at the 1.5 pts / £ spending rate – any spend after that 60 days will revert to the new value (I think it is 0.5 point / £?

    • guesswho2000 says:

      Nothing for me yet, ‘card year’ resets in July.

  • Paul says:

    OT / Bits. If I’ve booked (*2) BA Business outward on a 241 companion voucher, what’s the impact if I book BA First seat for the return? Thanks.

    • Rob says:

      What do you mean? You can call BA and switch to F for the return if you want.

      • Paul says:

        Rob, I just wanted to know if I could mix classes ie Business on the way out and First on the return.

        • Bonglim says:

          Yes it is fine
          there is no problem with mixed classes.

          I did a 241 on a first flight to Houston and a business class back from Chicago.

  • David says:

    OT: Iberia’s famous points promo

    Sorry to bring this up again (zombie esque like the UK EU Withdrawal Agreement!) but I have a question about flights booked with points from the Iberia 90K avios bonanza last year.

    Has anyone had to change or cancel flights booked with those promo avios since 1 Dec 2018?

    I have flights for 2 people booked for Oct 2019 but now 1 of the passengers cant travel. Usually there’d be a change/cancellation fee and the avios would be returned. But as the flights were booked with promo avios in this case I fear they may just vanish…

    I wonder whether to chance Iberia’s rubbish IT on the presumption that it couldn’t find its face in the dark on a good day.

    Has anyone had experience of what happens to cancelled bookings using points under the promo?

    Thanks

  • insider says:

    “The new A350-1000 aircraft are substantially cheaper to fly than the older aircraft they replace”

    …and will also have substantially higher ownership costs…

    • Rhys says:

      Which is a known and predictable cost vs the fluctuating and unpredictable cost of jet fuel!

This article is closed to new comments. Feel free to ask your question in the HfP forums.

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