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SAN FRANCISCO, April 21, 2011 /PRNewswire/ -- Virgin America today reported its financial results for the fourth quarter of 2010 and full year 2010. Against the backdrop of higher fuel costs and the 2010 winter storms, the airline reported strong revenue performance with a 32 percent jump in revenue versus full year 2009. The airline reported revenues of $191 million for the fourth quarter of 2010 and $724 million for full year 2010 – a year-over-year revenue increase of 25 percent and 32 percent respectively (on a 17 percent year-over-year increase in capacity for the full year). For full year 2010, Virgin America reported a $12 million operating loss on revenues of $724 million — a 68 percent year-over-year improvement, and notable given that the airline's fuel costs also increased by $73 million for the same period due to higher fuel costs per gallon. The airline reported a (1.7) percent operating margin for full year 2010. As the airline continued to deliver significant growth, it reported industry-leading unit revenue performance (RASM) with a 16 percent improvement in RASM year-over-year for full year 2010. The growing airline's stage-length adjusted guest unit revenue was also up 12 percent for the quarter and 20 percent for the full year. In 2010, the company reported its first quarterly net profit in the third quarter. Despite its revenue performance and its first quarterly net profit, the airline's full year 2010 results were lower than originally forecast primarily due to increased fuel costs, higher costs of growth and the impact of the East Coast storms.
(Logo: http://photos.prnewswire.com/prnh/20090123/VIRGINAMERICALOGO)
"As a young airline still fueling growth, we continue to move in the right direction with our top line progress and revenue results, especially given the backdrop of global recession and an unprecedented run-up in oil prices since our 2007 launch," said Virgin America President and CEO David Cush. "For the last three years, our passenger unit revenue performance gains have surpassed industry performance. With a loyal base of flyers, an unrivalled product and the best service team in the business, we're pleased with our company's trajectory in what was just our third year of operations."
The airline grew its fleet from 28 aircraft to 34 aircraft during 2010. The airline's yield per passenger mile for full year 2010 was 11 cents, up 16 percent compared to full year 2009. Virgin America continues to hedge in order to help manage fuel price volatility. The airline hedged 50 percent of its 2011 projected fuel requirements, with 77 percent of its first quarter 2011 requirements hedged at an average crude oil call strike price of $82 per barrel.
Although a privately held company, Virgin America is announcing these earnings results in advance of the Department of Transportation's (DOT) quarterly reports.
Full Year 2010 Reporting Highlights:
http://finance.yahoo.com/news/Virgin-America-Reports-Fourth-prnews-1717135052.html?x=0&.v=1
(Logo: http://photos.prnewswire.com/prnh/20090123/VIRGINAMERICALOGO)
"As a young airline still fueling growth, we continue to move in the right direction with our top line progress and revenue results, especially given the backdrop of global recession and an unprecedented run-up in oil prices since our 2007 launch," said Virgin America President and CEO David Cush. "For the last three years, our passenger unit revenue performance gains have surpassed industry performance. With a loyal base of flyers, an unrivalled product and the best service team in the business, we're pleased with our company's trajectory in what was just our third year of operations."
The airline grew its fleet from 28 aircraft to 34 aircraft during 2010. The airline's yield per passenger mile for full year 2010 was 11 cents, up 16 percent compared to full year 2009. Virgin America continues to hedge in order to help manage fuel price volatility. The airline hedged 50 percent of its 2011 projected fuel requirements, with 77 percent of its first quarter 2011 requirements hedged at an average crude oil call strike price of $82 per barrel.
Although a privately held company, Virgin America is announcing these earnings results in advance of the Department of Transportation's (DOT) quarterly reports.
Full Year 2010 Reporting Highlights:
- Operating results: The airline reported an operating loss of $12 million (a 68 percent improvement year-over-year). This resulted in a (1.7) percent operating margin for the year (a 5.4 point improvement year-over-year).
- Load factors: Revenue passenger miles increased 15 percent on a 17 percent increase in capacity, resulting in a 2010 load factor of 82 percent – a drop of 1.3 points year-over-year.
- Top line progress: Revenue in 2010 was up 32 percent versus 2009. RASM increased by 16 percent year-over-year. The airline's stage-length adjusted guest unit revenue was up 20 percent versus 2009.
- Cost control: Operating expense per available seat mile excluding fuel (ex-fuel CASM) dropped 2 percent in 2010 even with investment to fuel growth (training, people and aircraft in modification), demonstrating the carrier's continued commitment to cost control.
- Cash: The airline ended 2010 with $30 million in unrestricted cash and $66 million in total liquidity.
http://finance.yahoo.com/news/Virgin-America-Reports-Fourth-prnews-1717135052.html?x=0&.v=1