VS returned to profitability in 2024

[mitchja]

VS have just released their 2024 financial results which shows they have returned to profitability for the first time since the pandemic.

More details here.

This is great news for the airline and for getting some of the shackles of Pandemic Debt paid down, and I understand some of it has been refinanced to spread the load out a little bit.

There is a growing issue with pay deals which have still yet to be signed off, and haemorrhaging both cabin and flight deck crew to BA is meaning that their USP of having such a strong crew base who connect with their passengers is waining, not to mention that the new 339 order removes one of their USPs with no social space. its minor stuff but you can't continue to be all fur coat and no knickers if you want to still continue to be a premium product, especially in such a competitive marketplace, where trade with the US looks like it could be strained , what that will do to tourism and leisure travel remains to be seen.

This is great news for the airline and for getting some of the shackles of Pandemic Debt paid down, and I understand some of it has been refinanced to spread the load out a little bit.

There is a growing issue with pay deals which have still yet to be signed off, and haemorrhaging both cabin and flight deck crew to BA is meaning that their USP of having such a strong crew base who connect with their passengers is waining, not to mention that the new 339 order removes one of their USPs with no social space. its minor stuff but you can't continue to be all fur coat and no knickers if you want to still continue to be a premium product, especially in such a competitive marketplace, where trade with the US looks like it could be strained , what that will do to tourism and leisure travel remains to be seen.

I think VS have been transitioning to a "normal" airline for some time now.

• Lack of social space on the 339 is probably fine, given the social spaces now suck. The Booth and The Loft are an utter failure, just like the 35K seat choices in Upper.
• All the penny pinching with F&B has obviously helped drive profits.
• The FC changes were made specifically to capture more millions from the US CC market.

I think VS management have done a great job of turning a premium airline into a more mediocre one to be honest.

Good news for VS but more to be done. I think if the Trent 1000 issue had not come up they could have hit £30 million easy. A consolidation of operation at.LHR has helped drive costs down. Virgin holidays is also doing well and if VS bring more new destinations online like Cancun and Dubai, they will sell more UK package holidays. I suspect with no aircraft deliveries in 2025 VS will pay down some more of their debt. I know what people mean with penny pinching in premium and upper, lack of champagne and less amenities like the bar and reduced menu.

The bar on the A333 is set back so they could have done it on the A339 they just chose not to. The upper class seat on the A339 should have gone on the A350. When VS manufactured its own seat the build quality was much better I would also like to see New routes for Manchester in 2026 LA and Cancun would be top of my list. Given the upcoming World Cup in the U.S. I’m actually travelling through Heathrow in the summer so will be interesting to see how the passengers experience stacked up against Manchester.

The upper class seat on the A339 should have gone on the A350. When VS manufactured its own seat the build quality was much better

Have you flown on the 350 much? That seat is awful. Even VS themselves are starting to admit that they were cheap on the Sapphire vs Super Diamond choice.

I agree on quality, but airlines almost never make their own seat. VS was an exception (as is usually the case).

The upper class seat on the A339 should have gone on the A350. When VS manufactured its own seat the build quality was much better

Have you flown on the 350 much? That seat is awful. Even VS themselves are starting to admit that they were cheap on the Sapphire vs Super Diamond choice.

I agree on quality, but airlines almost never make their own seat. VS was an exception (as is usually the case).

I must be the only person that prefers the seat on the a350.

IMO

Best seat hard and soft product is A330-900 Neo
Espec. The retreat suites.

A350 I don’t mind, I just feel that the space is a bit cramped and actually prefer A300/789 on USA-LHR as I primarily sleep and find them more comfortable.

Big question is whether they are going to refit the 787 they are keeping anytime soon.
Because again, Russian roulette between a330-900, A350 and 787 in UC.

In regards to the profitability, it’s great for VS.
However; I’ve seen lately that the prices between VS and BA, AL, are way more expensive.

I can remember a trip I booked for Sept 2020 (which was postponed due to Covid) booked in 20219. was £2,500 LHR-MIA, JFK-LHR for 2 adults in UC. Plus it included Chauffer car service which since they have scrapped. This is now way over £4k return.
I think if their prices were more competitive; it would help.
Plus the USA situation politically and economically isn’t going to help.

Encouraging news with the 2024 results, though VS are now warning of headwinds on the horizon. Probably need to continue to diversify methinks: -

https://www.theguardian.com/business/20 ... s-bookings

The point I was tying to make on the Upper Class seat is Delta has the same seat on the A350/A339 so why VS tried to be clever by having to different seats is beyond me. Going back to the financials they will be wanting to get that load factor above 80% especially with all the uncertainty around the tariffs. With jet fuel coming down to $60 - $65 a barrel the aggressive fleet renewal strategy will come into play, as some of the newer aircraft are between 10% to 20% more fuel efficient. Fuel is Virgin's single biggest cost base so if that can come down by 5% thats where your profit comes from. I just hope they din't over hedge the fuel bill.