Virgin America down to 22 million in unrestricted cash

[hoover84]

Operating results: The airline reported a $10 million operating loss on revenues of $153 million, an improvement of 51 percent over the fourth quarter of 2008.
Record load factors: The airline reported an 84.3 percent load factor in the fourth quarter of 2009 – a 3.1 point improvement over the fourth quarter of 2008, despite a 47 percent increase in scheduled service capacity for the quarter. Including charter operations, total capacity increased by 42 percent. The airline consistently outperformed the industry in the fourth quarter, with an 84.6 percent load factor in October; 83.2 percent load factor in November; and an 85.0 percent load factor in December.
Significant top line progress: Revenue in the fourth quarter of 2009 was up by 29 percent versus the fourth quarter of 2008. Virgin America's stage-length adjusted guest unit revenue was essentially flat (down 1.0 percent) versus the fourth quarter of 2008, during a period in which the industry's unit revenue declined by four percent overall.
Exceptional cost control: Unit costs (CASM) dropped by 18 percent while ex-fuel CASM dropped by 24 percent, as the airline was able to increase capacity at a very low marginal cost.
Cash: The airline ended the fourth quarter of 2009 with $22 million in unrestricted cash and $129 million in total liquidity.

 

[ultrarunner]

What's the minimum cash-on-hand required to restructure?

 

[FDJ2]

Did I read that right? Revenue up 29% on a 47% increase in capacity. That doesn't sound too good. You would think that increases in revenue might be somewhat close to increases in capacity, but certainly not upside down.

 

[ultrarunner]

It's all about yield.

Virgin is adding more seats and giving them away.

 

[Hamburger]

No Worries, Sir Richard..............I mean some Hedge Fund that can't vote will dig up some more cash from somewhere.

No need to look any further, the guys who used to work for Board Member Sam Skinner when he was Transportation Secretary gave the them thumbs up. Sure they had to make some changes to be 'legal', which is evidence that they were operating illegally up until that point........

Nothing to see here. It's not a thinly veiled Cabotage scam.
It has 'America' right there in the name!

 

[ACL65PILOT]

Well, time will tell. There is nothing against Sir Richard buying all of the seats

 

[clickclickboom]

dont go there bud. Cramden and that guy with the decathalon will go ape

 

[General Lee]

Sir Richard sure does have a lot of cash, oh wait, that Volcano deal sure didn't help. That darn Iceland! First they destroy Europe's economy, then they destroy the airlines......


Bye Bye--General Lee

 

[ualdriver]

http://www.virginamerica.com/va/pre... Quarter and Full Year 2009 Financial Results

If you want to read more. No SEC filing...

10M operating loss on 153M for their 4th quarter ended March 31.

48M loss on 548M for their fiscal year.

No info on net losses. I was surprised their unrestricted cash balance was that low and they didn't comment on that.

 

[whymeworry?]

Virgin, or any airline who gives away seats, is a cancer to this industry. It it is corporate irresponsibility that has wrecked our profession and left the industry drowning in debt. Nothing against Virgin pilots but their demise would be beneficial to the overall industry. Their model is simply not sustainable and the dumping of capacity on to the marketplace serves to undermine the long-term viability of our business.