Virgin Atlantic reported today that while their year to year profits nearly doubled, it will be almost impossible for airlines to get out of the red this year. Even though oil has plummeted, making airfare prices more affordable than they have been in years, the current weak economic climate has made it hard for airlines to convince passengers to fly.
These are indeed some of the most difficult times for most airlines, and many experts do not see a light at the end of the tunnel (or runway) anytime soon. So what is the answer to this grim situation? Cut backs.
Virgin Atlantic reported that their passengers numbers jumped by nearly 6 million last year, but will have to cut their service by seven percent. Profits doubled for Branson’s Virgin Atlantic from 34.8 million pounds (55.4 USD) in 2008 to 68.4 million pounds (108.9 USD) this year.
The same happy news can not be found over at rival British Airways. BA reported last Friday that it had a pretax loss of 401 million pounds (638 USD), with no good news on the horizon.
Source: Reuters
