Virgin records pre-tax profit of £18.5m

Pre-tax profit of £18.5m
Revenues increased 13% to £2.7bn
£100m investment in products/services (though this seems to be on things already announced)

Full details here:

http://news.sky.com/home/business/article/16047114

That's very good news, slim but good. Be pleased to see some of that investment spent onboard esp. grub, but good all the same and I hope the full year is better.

[Darren Wheeler]

I'm guessing that some of the £100m is earmarked for the refits.

I'm guessing that some of the £100m is earmarked for the refits.

I wonder if this is an extra £100m though, because most of the £100m would be taken up on refits, its going to be costly, if they want new IFE that means new seats for the entire refit would cost tens of thousands.

Good news.

Is the article referring to VH regarding the UK Retail stores? The article otherwise seems to focus on VS. Are Sky News confusing the 2?

Luke

[mitchja]

I also presumed they meant VH and not VS.

I also presumed they meant VH and not VS.

VH have opened lots of shops in Debenhams stores.

Steve Ridgway is quoted in the Financial Times on the results. He seems to play down the appointment of Deutsche Bank to carry out a strategic review and had no comment on potential deals with Delta et al.

http://www.ft.com/cms/s/0/c1a4632c-c35a ... z1UTfG7vxe

[mcmbenjamin]

According to VS's website, Virgin Atlantic carries '5m and 6m {passengers}each year'.

Using the mean of 5.5m: VS makes a profit of GBP3.36/passenger.

Question: Does anyone know how a fuel surcharge (YQ) is handled under IFARs or UK accounting rules? I have a feeling that the YQ might be outside the revenue number...

Question: Does anyone know how a fuel surcharge (YQ) is handled under IFARs or UK accounting rules? I have a feeling that the YQ might be outside the revenue number...

It might be in a separate line as "other revenue" but the fuel surcharge would be accounted for as revenue.

Question: Does anyone know how a fuel surcharge (YQ) is handled under IFARs or UK accounting rules? I have a feeling that the YQ might be outside the revenue number...

It might be in a separate line as "other revenue" but the fuel surcharge would be accounted for as revenue.

Yes it would be accounted for in revenue because it IS revenue. The money goes to VS to pay for fuel which is an operating cost.

There is no way that it cannot be accounted for in the VS account.

[mcmbenjamin]

Thanks! I was thinking there might be a trick in accounting for the revenue.