Virgin America Posts $76 Million Loss

[Grandpa +65]

Virgin America Posts $76 Million Loss
BY JACK NICAS

Virgin America said Tuesday that its first-quarter loss widened to $76 million, though the head of the five-year old airline said it still plans to go public next year.
The closely held carrier is the fastest-growing airline in the U.S., but has never earned an annual profit, losing more than $530 million since its launch in 2007.
Chief Executive David Cush said he is sticking with previous forecasts that 2012 will be profitable—despite its first-quarter loss widening from $45 million a year ago—with demand strong for the rest of the year.
The airline on Tuesday also announced its first code-share ...

http://online.wsj.com/article/SB10001424052702304299704577505042862972950.html?ru=yahoo&mod=yahoo_hs

 

[n757st]

46 million operating loss and down to almost 100 million in cash. Looks like they might need another cash infusion.

 

[Grandpa +65]

VA has lost upwards of 500M in the last five years. I wonder, How much longer they will stay in business?

 

[sflax]

Go public, get 500 million back. Now you are at least whole and let it go under.

 

[n757st]

Go public, get 500 million back. Now you are at least whole and let it go under.

Not a lot of people are willing to invest in an IPO for a company posting an 18% operating loss, 28% negative profit margin. Good luck va guys, hope things improve.

 

[bri5150]

I think the next two quarters will be very telling with next to no aircraft deliveries and expansion.

 

[N1atEcon]

Not a lot of people are willing to invest in an IPO for a company posting an 18% operating loss, 28% negative profit margin. Good luck va guys, hope things improve.

You would be suprised how many will pour money into that hole in the ground. They will brag it up about it being the next best thing. The big players will get in early and then bail leaving all the individual investors with a loss. VA is offering nothing more than fancy lights and some cute FA's. Other than that it is point A to B on a airbus like the others ie. Frontier, Spirit, Jet blue, Skybus (RIP). I know I will avoid the IPO just like I avoided Face book.

 

[Flyby1206]

You would be suprised how many will pour money into that hole in the ground. They will brag it up about it being the next best thing. The big players will get in early and then bail leaving all the individual investors with a loss. VA is offering nothing more than fancy lights and some cute FA's. Other than that it is point A to B on a airbus like the others ie. Frontier, Spirit, Jet blue, Skybus (RIP). I know I will avoid the IPO just like I avoided Face book.

It's called a "pump n dump."

Can be applied to either the FAs or the IPO shares of stock

 

[Lake Alice]

Facebook proved "pump and dump" to be a flawed plan.

 

[B-J-J Fighter]

The 1st post said they lost $ in the 1st qtr. So did they lose $ in the 2nd qtr?