Virgin America reports first quarterly profit

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Virgin America reports first quarterly profit

Unread post by bimjim » Wed Nov 10, 2010

Virgin America reports first quarterly profit
By: Michael Fabey
November 09, 2010

Virgin America reported a third-quarter profit of $7.5 million, the airline’s first quarterly profit, compared with a $5.9 million loss for the same period a year ago.

The airline reported $202 million in quarterly revenue, a 28% increase.

"We’re continuing to see strong revenue performance into the fourth quarter and with continued industry capacity discipline, we’re encouraged by the outlook," said Virgin America CEO David Cush.

Virgin America increased its capacity in the third quarter by about 10%. But the airline’s traffic only increased by about 7%, pushing down load factor by two percentage points, to 84%.

Still, the airline is looking to grow.

"We look forward to expanding our growing network to Dallas-Fort Worth, Los Cabos and Cancun in the months ahead," Cush said.

Like other airlines, Virgin predicts "significant increases" in bookings and fares in the fourth quarter of 2010.

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