Friday, August 9, 2013
Virgin America Reports Profitable Second Quarter
Virgin America reported its first quarterly profit in nearly three years, with $8.8 million in net income compared to a loss of $31.8 million during the same period in 2012.
While the San Francisco-based airline was profitable for the quarter, it still posted a net loss of $37.5 million for the first six months of 2013. Since its inception in 2007, the carrier has yet to post an annual net profit. During the second quarter Virgin America's revenue per available seat mile , a basic measurement of how much revenue is generated per increment of capacity, improved by 7.8 percent compared to the second quarter of 2012.
"Our first ever second-quarter net profit and year-to-date operating income show that our company is now poised to produce meaningful profitability," said David Cush, president and CEO of Virgin America.
Cush said profitability is becoming more attainable after slowing the airline's growth from the "30 percent-plus level of the past few years to a more sustainable rate."
Between 2010 and 2012, Virgin America doubled the size of its fleet, adding 24 passenger jets, and does not plan on expanding its fleet size again until 2015, resulting from an Airbus order for 60 A320s placed in 2011.
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