VIRGIN ATLANTIC ANNOUNCES RISE IN PROFITS IN 2001

Virgin Atlantic Airways today announced its results for the year ending April 2001 which showed an increase in turnover from £1.27 billion to £1.52 billion and an increase in profits, before tax and exceptional items, from £40m to £45.5m.

Welcoming the report of another profitable year for Virgin Atlantic and its related cargo and holiday operations Richard Branson, Chairman of the group, said:

“It gives me great pleasure to report an increase in profits for Virgin Atlantic in the year end April 2001. Market conditions throughout the year were difficult with intense competition, high fuel prices and, in particular, a weak pound. During the last quarter of the financial year signs of an economic slow down in the USA have impacted on the transatlantic market both at home and overseas, particularly for business traffic. Despite this the yields and load factors achieved by the airline have been strong.

“These impressive results would not have been possible without the continued support of all our customers and suppliers. Our thanks go to them and to our magnificently dedicated staff whose individual contributions make Virgin Atlantic the success it is and which was recognised in the granting of the prestigious OAG Airline of the Year Award.”

Highlights of the year May 2000 to April 2001 include:

- continued route expansion with new services launched to Las Vegas and Delhi and increased frequencies to San Francisco, Cape Town and Shanghai.

- fleet growth; with three additional Boeing 747s and two Airbus A321s added during the year and orders placed for five more 747 400s, six Airbus A380 superjumbo aircraft.

- product innovation; the successful roll out of the award winning Upper Class seat and cabin and the opening of new clubhouses in San Francisco and JFK.

- public recognition; the airline received a number of awards including the OAG Airline of the Year Award.

Virgin Atlantic carried 4.4m passengers during the financial year, compared to 3.9m for the previous year. During the financial year Virgin Atlantic carried its 30 millionth cumulative passenger. At the end of April 2001 the Virgin Atlantic group of companies operated a fleet of 34 aircraft and employed approximately 8,900 staff.