Virgin America Airbus A320-214 N621VA (msn 2616) LAX (Michael B. Ing), originally uploaded by Airliners Gallery.
Virgin America (San Francisco) today reported a third quarter net profit of $7.5 million – the airline’s first quarterly net profit. As Virgin America continues to deliver significant growth, the airline reported a record quarterly operating profit of $21 million (a 314 percent improvement year-over-year), resulting in a 10.4 percent operating margin for the quarter. The airline reported revenues of $202 million for the quarter – a year-over-year revenue increase of 28 percent. The airline also reported strong unit revenue performance (RASM) for the quarter, with a 17 percent improvement year-over-year, a period in which the industry’s unit revenue grew by 10 percent. The airline’s stage-length adjusted guest unit revenue was up 23 percent.
The airline’s yield per passenger mile in the third quarter was 11 cents, up 20 percent compared to the third quarter of 2009. Virgin America continued to hedge in order to help manage fuel price volatility. The airline has hedged 86 percent of its remaining 2010 projected fuel requirements at an average crude oil call strike price of $82 per barrel. Adjusting for the non-cash unrealized gains on its fuel derivatives, the airline would have reported operating income of $19 million and a 9.4 percent operating margin for the third quarter.
Copyright Photo: Michael B. Ing. Please click on the photo for additional details.