Virgin Atlantic faces loss as weak pound crimps travel to US

Flight promotion: A Virgin Atlantic Boeing 747-400 landing at San Francisco International Airport. Virgin is promoting flights to the UK in markets such as the US, South Africa and Hong Kong. – Reuters

LONDON: Virgin Atlantic Airways Ltd is bracing for a loss this year as a slump in the pound since Britain voted to quit the European Union weighs on bookings and cut-price rivals ramp up US capacity.

While Virgin is thinning out management and taking other steps to buoy margins, it’s unlikely to be able to offset the combined impact of higher dollar costs for fuel and aircraft, Britons opting for shorter breaks and a decline in fares amid increased competition, chief executive officer Craig Kreeger said.