Welcome!

News Feed Item

Virgin America Reports Second Quarter 2014 Earnings

Airline Reports Second Quarter and Year-to-Date Net Income, Seventh Straight Quarter of Improved Year-over-Year Financial Results

SAN FRANCISCO, Aug. 12, 2014 /PRNewswire/ -- Virgin America today reports its financial results for the second quarter of 2014 with operating income of $47.1 million and net income of $37.0 million. The airline posted an operating margin of 11.8 percent – a 4.4 point improvement over the second quarter of 2013, driven largely by a 7.8 percent growth in revenue per available seat mile (RASM) over the prior year period.

Second Quarter 2014 Financial Highlights

  • Operating Revenue: Total operating revenue of $398.8 million, an increase of 6.1 percent over the second quarter of 2013.
  • Revenue per Available Seat Mile (RASM): RASM increased 7.8 percent compared to the second quarter of 2013, to 12.46 cents.  Year-over-year RASM growth was driven by a 5.0 percent increase in yield and a 1.2 point increase in load factor.
  • Cost per Available Seat Mile (CASM): Total CASM increased 2.7 percent compared to the second quarter of 2013, to 10.99 cents.  CASM excluding fuel costs for the quarter increased 3.9 percent year-over-year, to 6.87 cents, primarily due to higher labor and airport costs.
  • Operating Income:  Second quarter of 2014 operating income increased by 69.1 percent over the second quarter of 2013 to $47.1 million with an operating margin improvement of 4.4 points year-over-year.  
  • Net Income: Net income for the quarter increased fourfold year-over-year, from $8.8 million to $37.0 million. Virgin America's year-to-date net income improved by $52.2 million from a net loss of $37.5 million for the six months ended June 30, 2013 to net income of $14.6 million for the six months ended June 30, 2014, an improvement of 7.5 margin points.
  • Capacity:  Available seat miles (ASMs) for the second quarter of 2014 decreased 1.6 percent year-over-year.  The airline ended the quarter with 53 Airbus A320-family aircraft.
  • Liquidity: Unrestricted cash was $180.0 million as of June 30, 2014.

Operational Highlights
Recent key milestones achieved include:

  • In April, for the second straight year, Virgin America was the top-ranked airline in the Airline Quality Rating (AQR), an annual analysis of airline performance conducted by Wichita State University and Embry-Riddle Aeronautical University. Based on publicly reported data all carriers must submit to the U.S. Department of Transportation, the AQR provides a ranking of how airlines stack up against each other on key metrics important to consumers including: on-time performance, customer complaints, denied boarding and mishandled bags. 
  • In May, Virgin America announced that it had sub-leased two gates at Dallas Love Field (DAL) from American Airlines.  Service from Love Field to New York's LaGuardia Airport, Ronald Reagan Washington National Airport in Washington, D.C., Los Angeles International Airport, and San Francisco International Airport is scheduled to begin in October 2014.
  • In July, Virgin America secured "Top Domestic Airline" ranking for the seventh consecutive year in the annual Travel + Leisure's World's Best Awards readers' survey. 
  • Also in July, Virgin America took top honors for Best Low-Cost Airline in the U.S.A. for the fifth consecutive year as well as Best Staff Service among North American airlines for the fourth year in a row in the 2014 World Airline Awards (formerly Skytrax awards).

 

Virgin America, Inc.

Consolidated Statements of Operations - Unaudited

For the Three and Six Months Ended June 30, 2014 and 2013

(in thousands)

















Three months ended






Six months ended





June 30






June 30





2014


2013


% Change




2014


2013


% Change

















Passenger revenue

$  357,619


$  341,027


4.9




$  633,837


$  610,061


3.9


Other revenue

$    41,227


$    35,047


17.6




$    78,398


$    67,345


16.4


Total operating revenue

$  398,846


$  376,074


6.1




$  712,235


$  677,406


5.1
































Aircraft fuel

$  131,664


$  133,312


(1.2)




$  247,423


$  249,908


(1.0)


Salaries, wages and benefits

$    59,318


$    48,930


21.2




$  113,143


$    94,245


20.1


Aircraft rent

$    45,861


$    51,707


(11.3)




$    92,357


$  110,725


(16.6)


Landing fees and other rent

$    33,286


$    31,189


6.7




$    65,507


$    58,758


11.5


Sales and marketing

$    28,615


$    29,952


(4.5)




$    53,177


$    48,184


10.4


Aircraft maintenance

$    16,409


$    15,432


6.3




$    35,453


$    32,892


7.8


Depreciation and amortization

$      3,483


$      3,249


7.2




$      6,753


$      6,408


5.4


Other operating expenses

$    33,083


$    34,431


(3.9)




$    64,426


$    63,390


1.6


Total operating expenses

$  351,719


$  348,202


1.0




$  678,239


$  664,510


2.1

















Operating income (loss)

$    47,127


$    27,872


69.1




$    33,996


$    12,896


163.6

















Operating Margin

11.8%


7.4%


4.4

pts


4.8%


1.9%


2.9

pts
















Other expense

$      9,877


$    19,023


(48.1)




$    19,051


$    50,435


(62.2)

















Income (loss) before taxes

$    37,250


$      8,849


321.0




$    14,945


$  (37,539)


 NM 

















Income tax expense

$          267


$             -


 NM 




$          316


$             -


 NM 

















NET INCOME (LOSS)

$    36,983


$      8,849


317.9




$    14,629


$  (37,539)


 NM 


 


Three months ended





Six months ended




Key Operating Statistics

June 30





June 30





2014


2013


% Change



2014


2013


% Change
















Available seat miles (ASMs)(millions)

3,202


3,253


(1.6)



5,979


5,948


0.5


Departures

15,137


15,130


0.0



28,962


27,712


4.5


Average stage length (miles)

1,482


1,510


(1.9)



1,445


1,510


(4.3)


Aircraft in service

53


53


-



53


53


-


Fleet utilization (blk hours per ac day)

11.3


11.6


(2.6)



10.7


10.7


-
















Passengers (thousands)

1,729


1,730


(0.1)



3,208


3,068


4.6


Average fare

$ 206.81


$ 197.07


4.9



$ 197.55


$ 198.86


(0.7)


Yield per passenger mile (cents)

13.15¢


12.52¢


5.0



12.89¢


12.70¢


1.5


Revenue passenger miles - RPMs (millions)

2,719


2,723


(0.1)



4,917


4,806


2.3


Load factor

84.9%


83.7%


1.2

pts


82.2%


80.8%


1.4

pts

Passenger revenue per available seat mile - PRASM (cents)

11.17¢


10.48¢


6.6



10.60¢


10.26¢


3.3


Total revenue per available seat mile - RASM (cents)

12.46¢


11.56¢


7.8



11.91¢


11.39¢


4.6
















Cost per available seat mile - CASM (cents)

10.99¢


10.70¢


2.7



11.34¢


11.17¢


1.5


Cost per ASM, excluding fuel (cents)

6.87¢


6.61¢


3.9



7.21¢


6.97¢


3.4


Fuel cost per gallon

$ 3.11


$ 3.13


(0.6)



$ 3.14


$ 3.23


(2.8)


Fuel gallons consumed (thousands)

42,281


42,642


(0.8)



78,828


77,337


1.9


Teammates (FTEs)

2,500


2,375


5.3



2,500


2,375


5.3


Virgin America is announcing these financial results in advance of the U.S. Department of Transportation quarterly reports.

About Virgin America: Known for its mood-lit cabins, three beautifully designed classes of service and innovative fleetwide amenities — like touch-screen personal entertainment, WiFi and power outlets at every seat, Virgin America has built a loyal following of flyers and earned a host of awards since launching in 2007 — including being named both the "Best U.S. Airline" in Condé Nast Traveler's Readers' Choice Awards for the past six consecutive years and "Best Domestic Airline" in Travel + Leisure's World's Best Awards for the past seven consecutive years. For more: www.virginamerica.com

Virgin America logo.

Logo - http://photos.prnewswire.com/prnh/20090123/VIRGINAMERICALOGO

 

 

SOURCE Virgin America

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Detecting internal user threats in the Big Data eco-system is challenging and cumbersome. Many organizations monitor internal usage of the Big Data eco-system using a set of alerts. This is not a scalable process given the increase in the number of alerts with the accelerating growth in data volume and user base. Organizations are increasingly leveraging machine learning to monitor only those data elements that are sensitive and critical, autonomously establish monitoring policies, and to detect...
"We're a cybersecurity firm that specializes in engineering security solutions both at the software and hardware level. Security cannot be an after-the-fact afterthought, which is what it's become," stated Richard Blech, Chief Executive Officer at Secure Channels, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Most companies are adopting or evaluating container technology - Docker in particular - to speed up application deployment, drive down cost, ease management and make application delivery more flexible overall. As with most new architectures, this dream takes a lot of work to become a reality. Even when you do get your application componentized enough and packaged properly, there are still challenges for DevOps teams to making the shift to continuous delivery and achieving that reduction in cost ...
Enterprise architects are increasingly adopting multi-cloud strategies as they seek to utilize existing data center assets, leverage the advantages of cloud computing and avoid cloud vendor lock-in. This requires a globally aware traffic management strategy that can monitor infrastructure health across data centers and end-user experience globally, while responding to control changes and system specification at the speed of today’s DevOps teams. In his session at 20th Cloud Expo, Josh Gray, Chie...
To get the most out of their data, successful companies are not focusing on queries and data lakes, they are actively integrating analytics into their operations with a data-first application development approach. Real-time adjustments to improve revenues, reduce costs, or mitigate risk rely on applications that minimize latency on a variety of data sources. Jack Norris reviews best practices to show how companies develop, deploy, and dynamically update these applications and how this data-first...
Intelligent Automation is now one of the key business imperatives for CIOs and CISOs impacting all areas of business today. In his session at 21st Cloud Expo, Brian Boeggeman, VP Alliances & Partnerships at Ayehu, will talk about how business value is created and delivered through intelligent automation to today’s enterprises. The open ecosystem platform approach toward Intelligent Automation that Ayehu delivers to the market is core to enabling the creation of the self-driving enterprise.
"At the keynote this morning we spoke about the value proposition of Nutanix, of having a DevOps culture and a mindset, and the business outcomes of achieving agility and scale, which everybody here is trying to accomplish," noted Mark Lavi, DevOps Solution Architect at Nutanix, in this SYS-CON.tv interview at @DevOpsSummit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"We're here to tell the world about our cloud-scale infrastructure that we have at Juniper combined with the world-class security that we put into the cloud," explained Lisa Guess, VP of Systems Engineering at Juniper Networks, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
Historically, some banking activities such as trading have been relying heavily on analytics and cutting edge algorithmic tools. The coming of age of powerful data analytics solutions combined with the development of intelligent algorithms have created new opportunities for financial institutions. In his session at 20th Cloud Expo, Sebastien Meunier, Head of Digital for North America at Chappuis Halder & Co., discussed how these tools can be leveraged to develop a lasting competitive advantage ...
As businesses adopt functionalities in cloud computing, it’s imperative that IT operations consistently ensure cloud systems work correctly – all of the time, and to their best capabilities. In his session at @BigDataExpo, Bernd Harzog, CEO and founder of OpsDataStore, presented an industry answer to the common question, “Are you running IT operations as efficiently and as cost effectively as you need to?” He then expounded on the industry issues he frequently came up against as an analyst, and ...
The question before companies today is not whether to become intelligent, it’s a question of how and how fast. The key is to adopt and deploy an intelligent application strategy while simultaneously preparing to scale that intelligence. In her session at 21st Cloud Expo, Sangeeta Chakraborty, Chief Customer Officer at Ayasdi, will provide a tactical framework to become a truly intelligent enterprise, including how to identify the right applications for AI, how to build a Center of Excellence to ...
In his session at 20th Cloud Expo, Mike Johnston, an infrastructure engineer at Supergiant.io, discussed how to use Kubernetes to set up a SaaS infrastructure for your business. Mike Johnston is an infrastructure engineer at Supergiant.io with over 12 years of experience designing, deploying, and maintaining server and workstation infrastructure at all scales. He has experience with brick and mortar data centers as well as cloud providers like Digital Ocean, Amazon Web Services, and Rackspace. H...
You know you need the cloud, but you’re hesitant to simply dump everything at Amazon since you know that not all workloads are suitable for cloud. You know that you want the kind of ease of use and scalability that you get with public cloud, but your applications are architected in a way that makes the public cloud a non-starter. You’re looking at private cloud solutions based on hyperconverged infrastructure, but you’re concerned with the limits inherent in those technologies.
SYS-CON Events announced today that Massive Networks will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Massive Networks mission is simple. To help your business operate seamlessly with fast, reliable, and secure internet and network solutions. Improve your customer's experience with outstanding connections to your cloud.
DevOps is under attack because developers don’t want to mess with infrastructure. They will happily own their code into production, but want to use platforms instead of raw automation. That’s changing the landscape that we understand as DevOps with both architecture concepts (CloudNative) and process redefinition (SRE). Rob Hirschfeld’s recent work in Kubernetes operations has led to the conclusion that containers and related platforms have changed the way we should be thinking about DevOps and...