Virgin Atlantic Braces for a Loss and Blames the Pound
- Britons taking shorter breaks, while fuel and planes cost more
- Branson brand predicts reversal after three profitable years
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Virgin Atlantic Airways Ltd. is bracing for a loss this year as a slump in the pound since Britain voted to quit the European Union weighs on bookings and cut-price rivals ramp up U.S. capacity.
While Virgin is thinning out management and taking other steps to buoy margins, it’s unlikely to be able to offset the combined impact of higher dollar costs for fuel and aircraft, Britons opting for shorter breaks and a decline in fares amid increased competition, Chief Executive Officer Craig Kreeger said.