Virgin America Reports Record Third Quarter 2013 Financial Results Airline Reports 11.5% Operating Margin and Record Quarterly Net Income of $33.5 Million

SAN FRANCISCO, Nov. 12, 2013 /PRNewswire/ -- Virgin America today reports its financial results for the third quarter of 2013 with operating income of $44.4 million and net income of $33.5 million on total revenue of $387.3 million.   The airline posted an operating margin of 11.5 percent – a 7.2 point improvement for the third quarter, driven largely by a 9.4 percent growth in revenue per available seat mile ("RASM") over the year-earlier period.

(Logo: http://photos.prnewswire.com/prnh/20090123/VIRGINAMERICALOGO)

Third Quarter 2013 Financial Highlights

  • Virgin America reported $33.5 million in net income compared to a year-ago loss of $12.6 million, an improvement of $46 million.
  • The Company significantly outpaced all U.S. carriers with year-over-year RASM growth of 9.4 percent on a 3.9 percent decrease in capacity.   Virgin America has now led the industry in RASM growth every month since October 2012.
  • Load factor increased by 0.9 points and yield increased by 7.4 percent year-over-year.
  • Operating revenue was $387.3 million, an increase of 5.2 percent from the third quarter of 2012.
  • Cost per available seat mile (CASM) excluding fuel increased by 4.5 percent year-over-year, largely due to the airline's expansion into major airports like Newark Liberty International Airport (EWR), increased labor costs, and decreased utilization of the fleet as part of the Company's plan to improve unit revenue.
  • Year-to-date, Virgin America has generated operating income of $57.3 million, an increase of $94.1 million from the first nine months of 2012.
  • Unrestricted cash was $156.9 million as of September 30, 2013, an increase of $80.9 million since December 31, 2012.

"Our strong financial results demonstrate the success of a series of strategic initiatives that started in late 2012.  Reduced capacity growth, a focus on increasing unit revenue, and changes to our capital structure are all contributing to improving results.  Although the industry overall is trending in a positive direction, it is notable that Virgin America has consistently led the U.S. industry in RASM growth over the past year.  With the leading product in the domestic skies, we are well-positioned to continue building on these results in 2014 and beyond," said David Cush, Virgin America's President and CEO.

Since taking a pause in its fleet and network expansion, Virgin America is now experiencing improved revenue and profitability performance across its network. Virgin America took delivery of one aircraft in the first quarter of 2013, increasing its total operating fleet to 53 aircraft.  The Company does not plan to increase its fleet again until the second half of 2015, when aircraft on order from Airbus are scheduled for delivery.

Virgin America completed a restructuring of the majority of its debt with investors during May 2013, eliminating more than $300 million of existing debt and accrued interest.  As a result of this restructuring, Virgin America expects its interest expense to substantially decline to approximately $10 million per quarter through 2014.  Had the May 2013 restructuring been completed prior to the beginning of the year, Virgin America's year-to-date net income would have been approximately $30 million higher.  

Operational Highlights

Key milestones achieved in the third quarter of 2013 include:

In October, the airline once again took top honors as "Best U.S. Airline" in the prestigious Condé Nast Traveler's 2013 Readers' Choice Awards. The results of this year's Readers' Choice Awards were reported in the November issue of Condé Nast Traveler magazine and online at http://www.cntraveler.com/readers-choice-awards. This year, Condé Nast Traveler had a record-breaking 79,268 readers participate in the survey, close to double the number of survey takers in 2012. These savvy travelers cast 1.3 million votes for more than 16,000 properties around the world.

Since its launch in 2007, Virgin America has created 2,700 new jobs and now flies to San Francisco, Los Angeles, New York, Newark, Washington D.C. (IAD and DCA), Las Vegas, San Diego, Seattle, Boston, Fort Lauderdale, Orlando, Dallas-Fort Worth, Los Cabos, Cancun, Chicago, Puerto Vallarta, Palm Springs (seasonal), Philadelphia, Portland, San Jose, Austin and Anchorage (seasonal). 

 

VIRGIN AMERICA INC











Consolidated Profit & Loss Statement - Unaudited








September 30, 2013
























(unaudited in thousands)

Three months ended September 30




Nine months ended September 30





2013


2012


% Change


2013


2012


% Change















Guest revenue

352,229


337,485


4.4


962,289


898,254


7.1


Other revenue

35,117


30,559


14.9


102,461


84,167


21.7


Total operating revenue

387,346


368,044


5.2


1,064,750


982,421


8.4















Aircraft fuel

132,725


142,870


7.1


382,633


406,696


5.9


Salaries, wages and benefits

49,370


43,823


(12.7)


143,614


129,576


(10.8)


Aircraft rent

46,042


56,104


17.9


154,063


164,351


6.3


Landing fees and other rent

32,548


29,494


(10.4)


91,305


82,308


(10.9)


Sales and marketing

31,062


28,309


(9.7)


79,247


81,050


2.2


Guest services and supplies

14,430


13,365


(8.0)


40,555


37,668


(7.7)


Aircraft maintenance

14,091


15,742


10.5


49,688


53,137


6.5


Depreciation and amortization

3,359


2,953


(13.7)


9,767


8,225


(18.7)


Other operating expenses

19,322


19,554


1.2


56,587


56,247


(0.6)


Total operating expenses

342,949


352,214


2.6


1,007,459


1,019,258


1.2















Operating income (loss)

44,397


15,830


180.5


57,291


(36,837)


 NM 















Operating Margin

11.5%


4.3%


7.2

pts

5.4%


(3.7)%


9.0

pts














Other expense

10,893


28,458


61.7


61,327


83,557


26.6















NET INCOME (LOSS)

33,504


(12,628)


 NM 


(4,036)


(120,394)


96.6


 

VIRGIN AMERICA INC










Comparative Operating Statistics










September 30, 2013
























Three months ended September 30




Nine months ended September 30





2013


2012


% Change


2013


2012


% Change















Available seat miles (ASMs)(millions)

3,243


3,375


(3.9)


9,191


9,424


(2.5)


Departures

15,577


15,152


2.8


43,289


42,321


2.3


Average stage length (miles)

1,457


1,571


(7.3)


1,491


1,573


(5.2)


Aircraft in service (average)

53


52


1.9


53


50


6.0


Fleet utilization (blk hours per ac day)

11.4


12.1


(5.8)


11.1


12.4


(10.5)















Guests (thousands)

1,685


1,689


(0.2)


4,752


4,718


0.7


Average fare 

$   209.04


$   199.81


4.6


$   202.50


$        190.39


6.4


Yield per passenger mile (cents)

13.49¢


12.56¢


7.4


12.97¢


11.92¢


8.8


Revenue passenger miles - RPMs (millions)

2,612


2,687


(2.8)


7,417


7,533


(1.5)


Load factor

80.5%


79.6%


0.9

pts

80.7%


79.9%


0.8

pts

Guest revenue per available seat mile - PRASM (cents)

10.86¢


10.00¢


8.6


10.47¢


9.53¢


9.8


Total revenue per available seat mile - RASM (cents)

11.94¢


10.91¢


9.4


11.58¢


10.42¢


11.1















Cost per available seat mile - CASM (cents)

10.58¢


10.44¢


(1.3)


10.96¢


10.82¢


(1.3)


Cost per ASM, excluding fuel (cents)

6.48¢


6.20¢


(4.5)


6.80¢


6.50¢


(4.6)


Fuel cost per gallon

$        3.12


$        3.28


4.9


$        3.19


$            3.34


4.5


Fuel gallons consumed (thousands)

42,493


43,587


2.5


119,860


121,765


1.6


Teammates (FTEs)

2,376


2,406


(1.2)








Although a privately held company, Virgin America is announcing these financial results in advance of the DOT quarterly reports.

Photos of Virgin America's unique aircraft: http://www.virginamerica.com/about/airline-photos/virgin-america-pictures.html

Broadcast quality video b-roll can also be downloaded at:  https://www.virginamerica.com/html/39049.zip

About Virgin America: Headquartered in California, Virgin America offers guests attractive fares and a host of innovative features aimed at reinventing air travel. Virgin America was named "Best Domestic Airline" in the Condé Nast Traveler 2008, 2009, 2010, 2011, 2012 and 2013 'Readers' Choice' Awards and "Best Domestic Airline" in Travel + Leisure's 2008, 2009, 2010, 2011, 2012 and 2013 'World's Best' Awards. The airline's base of operations is San Francisco International Airport (SFO)'s sleek and sustainable new Terminal 2. The airline's new aircraft offer interactive in-flight entertainment systems and power outlets near every seat. Virgin America offers Gogo™ WiFi on every flight and hosts the largest in-flight entertainment library in the North American skies via the touch-screen Red™ platform. For more: www.virginamerica.com.

 

 

SOURCE Virgin America



RELATED LINKS
http://www.virginamerica.com

More by this Source


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.