Skift Take

Virgin seems to be going through an identity crisis with fares and flight capacities floating somewhere between budget and legacy airlines, and needs a break for services to catch up with its recent expansion.

After recording the latest in a string of quarterly losses, Virgin America has declared its intent to slow growth as part of a strategy to achieve profitability, which has eluded the carrier throughout its five-year existence. Earlier predictions by senior management of recording an operating profit for 2012 seem to be fading as Virgin America posted a USD53 million operating loss for 1H2012. The easing of its rapid growth could be a last-ditch effort to gain financial strength as patient investors wait for returns.

Virgin America has often said it is still a carrier in growth mode, and it seems its strategy to this point has been to trade building a critical mass for profitability. But that now appears to be changing.


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Tags: usa, virgin

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