Virgin Atlantic dives to £92m loss
VIRGIN Atlantic chief executive Steve Ridgway took a £100,000 pay cut in the last financial year as the airline reeled from the impact of 11 September.
Accounts filed with Companies House show he earned £200,000 in the 12 months to 30 April compared with his £300,000 pay the previous year.
The airline lost £92m before tax in the year compared with a profit of £45.5m last time, while sales fell from £1.53bn to £1.43bn . That was broadly in line with the gloomy picture painted in a May statement.
Virgin Atlantic booked a £102.2m exceptional charge for cutting staff and capacity after 11 September, only marginally offset by £9.7m compensation from the British Government for the closure of US airspace in the immediate aftermath. The company laid off 1,500 staff and cut capacity by a fifth, although the headcount at 30 April was down by only 276.
A geographical breakdown shows sales of flights to the Americas down by £118m at £1.05bn. Sales to American customers were down 15% at £349.2m. Virgin Atlantic was today announcing plans to more than double its flights to the Caribbean from 3,000 a year to 6,500 in the next 15 months.
