Higher oil prices and bigger investments bite into profits
Virgin America has posted a $44.6 million loss for the first quarter, bigger than the $35.5 million loss it reported for the first quarter of 2010. “Investment in growth and increased fuel prices” are the explanations given by the airline. Expenses increased by 37% on the year to $230.6 million, resulting in an operating loss of $29.5 million. Revenues also climbed 37% to $201.1 million.
President and CEO David Cush confessed to being disappointed by the operating results, but pleased with the revenue performance “and overall progress as a young airline in a significant growth phase.”