This article from NYTimes.com has been sent to you by psa188@xxxxxxxxx /-------------------- advertisement -----------------------\ Explore more of Starbucks at Starbucks.com. http://www.starbucks.com/default.asp?ci=1015 \----------------------------------------------------------/ Virgin Atlantic Posts Profit After a Year of Cost Cuts May 6, 2003 By HEATHER TIMMONS LONDON, May 5 - Like other trans-Atlantic airlines, Virgin Atlantic Airways spent 2002 cutting back hard. Unlike many of its rivals, Virgin managed to make it through the year in the black. Virgin reported a £10 million ($16.1 million) pretax profit for the fiscal year ended April 30, a sharp contrast to the airline's £92 million ($148 million) loss a year ago. Revenue for the latest fiscal year was £1.4 billion ($2.2 billion), down about 7 percent, largely because of promotional discount fares. The airline's passenger count was unchanged at approximately four million. Virgin cut costs last year by eliminating some North American routes and more than 1,000 jobs. Other than JetBlue and Southwest, all the major United States-based airlines experienced sharp drops in passenger volume and heavy losses in the most recent fiscal year. "Business travel was hit harder in the U.S. than anywhere else," said Glenn D. Engel, an analyst at Goldman, Sachs. In addition, leisure travel continued to suffer in the United States because of the collapse of the late 1990's stock market bubble, Mr. Engel said, and safety concerns kept more Americans than Europeans away from air travel. "Europe did better than the U.S. over all," he said. Sir Richard Branson, founder of Virgin Atlantic, repeated today his offer to rescue the British Airways fleet of Concorde supersonic jets from planned oblivion. It "remains a strong personal ambition to keep Concorde flying in Virgin Atlantic colors," Sir Richard said in a statement that accompanied Virgin's financial results. British Airways said on April 10 that it would retire the supersonic jets in October because they were too expensive to operate. Since then, Sir Richard has said repeatedly that he would like to buy at least one of the planes, offering to match what British Airways originally paid for them - £1 each. British Airways executives have dismissed his offer as a publicity stunt, and industry experts say they are skeptical that Sir Richard could do any better with the jets than the current owner has. "If he wants the Concorde, let him demonstrate that it is economically viable," said Clifford Winston, an economist with the Brookings Institution who studies the industry. Several museums, including the Smithsonian Institution's National Air and Space Museum in Washington and the Bristol Aero Collection, are hoping to receive Concordes after they are retired. Virgin Atlantic does not report after-tax profits because it is closely held. The Virgin Group, Sir Richard's media and telecommunications conglomerate, owns 51 percent of Virgin Atlantic. Singapore Airlines owns 49 percent. http://www.nytimes.com/2003/05/06/business/worldbusiness/06VIRG.html?ex=1053226904&ei=1&en=b113c4ece0f70f5f HOW TO ADVERTISE --------------------------------- For information on advertising in e-mail newsletters or other creative advertising opportunities with The New York Times on the Web, please contact onlinesales@xxxxxxxxxxx or visit our online media kit at http://www.nytimes.com/adinfo For general information about NYTimes.com, write to help@xxxxxxxxxxxx Copyright 2003 The New York Times Company