Virgin America reports second quarter net income of $37 million

Virgin America (San Francisco) today reported its financial results for the second quarter of 2014 with operating income of $47.1 million and net income of $37.0 million. The airline posted an operating margin of 11.8 percent – a 4.4 point improvement over the second quarter of 2013, driven largely by a 7.8 percent growth in revenue per available seat mile (RASM) over the prior year period.

Second Quarter 2014 Financial Highlights

Operating Revenue: Total operating revenue of $398.8 million, an increase of 6.1 percent over the second quarter of 2013.

Revenue per Available Seat Mile (RASM): RASM increased 7.8 percent compared to the second quarter of 2013, to 12.46 cents. Year-over-year RASM growth was driven by a 5.0 percent increase in yield and a 1.2 point increase in load factor.

Cost per Available Seat Mile (CASM): Total CASM increased 2.7 percent compared to the second quarter of 2013, to 10.99 cents. CASM excluding fuel costs for the quarter increased 3.9 percent year-over-year, to 6.87 cents, primarily due to higher labor and airport costs.

Operating Income: Second quarter of 2014 operating income increased by 69.1 percent over the second quarter of 2013 to $47.1 million with an operating margin improvement of 4.4 points year-over-year.

Net Income: Net income for the quarter increased fourfold year-over-year, from $8.8 million to $37.0 million. Virgin America’s year-to-date net income improved by $52.2 million from a net loss of $37.5 million for the six months ended June 30, 2013 to net income of $14.6 million for the six months ended June 30, 2014, an improvement of 7.5 margin points.

Capacity: Available seat miles (ASMs) for the second quarter of 2014 decreased 1.6 percent year-over-year. The airline ended the quarter with 53 Airbus A320-family aircraft.
Liquidity: Unrestricted cash was $180.0 million as of June 30, 2014.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Virgin America now has 53 Airbus A319s and A320s. Airbus A320-214 N840VA (msn 4616) completes its final approach to the runway at Los Angeles International Airport.

Virgin America: AG Slide Show