Virgin America Airbus A319-112 N528VA (msn 3445) SEA (Bruce Drum), originally uploaded by Airliners Gallery.
Virgin America (San Francisco) reported a $430,000 operating loss, an improvement of 92 percent over the second quarter of 2009. Adjusting for the non-cash unrealized losses on its fuel derivatives, Virgin America would have generated a $10 million operating profit for the quarter – an improvement of $23 million versus similarly adjusted operating results for the second quarter of 2009.
The airline reported record-setting performance for the quarter with revenues of $184 million – a 36 percent jump in revenue versus the second quarter of 2009. Unit revenue (RASM) increased by 23 percent year-over-year. As the airline continued to expand significantly, it broke even on an operating basis for the quarter – an improvement of 92 percent year-over-year. Yield per passenger mile in the second quarter was 11 cents, up 28 percent compared to the second quarter of 2009. Adjusting for the non-cash unrealized losses on its fuel derivatives, the airline would have reported operating income of $10 million and a 5.6 percent operating margin for the quarter. Virgin America continued to hedge in order to help manage fuel price volatility. The airline has hedged 85 percent of its second half of 2010 projected fuel requirements at an average crude oil call strike price of $82 per barrel.
Virgin America flies to San Francisco, Los Angeles, New York, Washington DC, Seattle/Tacoma, Las Vegas, San Diego, Boston, Fort Lauderdale/Hollywood, Toronto (Pearson), Orlando (starting October 6, 2010), Dallas/Fort Worth (starting December 2010), Los Cabos (starting December 16, 2010) and Cancun (starting January 19, 2011).
Copyright Photo: Bruce Drum. Airbus A319-112 N528VA (msn 3445) taxies to the active runway at Seattle/Tacoma, headed for SFO.