Virgin Atlantic delays return to profit as costs jump

Virgin Atlantic has pushed back its expectations for a return to profitability, as rising costs limit its ability to capitalise on a rebound in air travel.

The airline said on Wednesday that it now expected to turn a profit in 2024, after forecasting last year that this would happen in 2023.

The group, which had struggled to turn a profit even before the Covid-19 pandemic devastated the airline sector, reported a loss before tax of £342mn for 2022.

Despite Virgin’s passenger numbers almost quadrupling as Covid restrictions on travel were lifted last year, chief financial officer Oliver Byers said profitability had been affected by a weaker than expected pound and high inflation. Rising interest rates have also increased the cost of repaying Covid-related debts, he said.