Speaking at the announcement of Virgin Atlantic joining Star Alliance (see in this week’s BTN) Shai Weiss, CEO of the airline did not seem too concerned with fears that the pound sterling could even reach parity with the dollar despite a small recovery.
 
He said that 70% of the airline’s traffic went through the US, with 30% of revenue coming from the US. There is every indication that the UK will be very attractive to American visitors next year.  The Queen’s funeral attracted enormous viewing numbers.
 
“People are still catching up from two years of non-travel but there is no doubt people will adapt.” He added that for Americans, “this country is on sale”.
 
He said that revenue was up 27% and average value up 28% with 80-85% load factors in the fourth quarter. Summer bookings were “very, very strong” but with capacity 15-20% below 2019.
 
Weiss noted that the pound’s weakness would impact Virgin’s purchasing power. “We buy planes and fuel in dollars. Thankfully we took some financial decisions that will ease the burden over the next 12 months.
 
“We anticipated a potential decline in the pound and took financial positions which would allow us to benefit if the pound got to parity (with the dollar). For the next six to 12 months our position is slightly cushioned by some smart decisions we took earlier in the year.”
 
He added: “The message to the prime minister is pretty clear, maybe they need to take more difficult decisions to reverse the decline of the pound to ensure this country is not left with perceived weakness in international markets. We are concerned, but Virgin fundamentally is okay”.

www.virginatlantic.com