Sky News and the Financial Times said Richard Branson's carrier is mulling a fall IPO. It's unclear what executives at Delta Air Lines, a major shareholder, think about the prospect.
Citing “City sources”, Sky News said the airline founded by Richard Branson has received positive responses from institutional investors about an initial public offering, with an autumn announcement likely.
It said the move would almost certainly see Branson relinquish overall control of the business.
It added that Virgin Atlantic has hired Citi and Barclays to oversee the listing.
The airline is 51% owned by Branson’s Virgin Group and 49% by the U.S.’s Delta Air Lines Inc.
“We won’t be commenting on speculation,” said a Virgin Atlantic spokesperson.
Like most airlines, the firm has been hammered by the COVID-19 pandemic.
In April it reported a 659 million pound ($914 million) pretax loss for 2020 after passenger numbers dropped 80%.
Virgin Atlantic cut costs last year, shedding 41% of its workforce and retiring some older aircraft early.
(Reporting by Juby Babu in Bengaluru and James Davey in London; Editing by Kirsten Donovan and Christina Fincher)
Copyright (2021) Thomson Reuters. Click for restrictions
Subscribe to Skift Pro
Subscribe to Skift Pro to get unlimited access to stories like these ($30/month)Subscribe Now
Photo Credit: A seat on the upper deck of a Virgin Atlantic Airbus A350 in the daytime. Virgin Atlantic
A Deaf Traveler Opens Up About Making Travel More Accessible
Accessible travel shouldn't be something to be checked off a list. Instead, Marlene Valle says, it's a human right.
Ruthy Munoz | 20 hours ago
All-Star Investors Katzenberg, Thiel, and Tosi Take Stake in Travel Startup Flyr
The WestCap Group has led a $150 million round in Flyr, a startup that helps travel companies boost their revenue. "Mogul management" appears to be the new "revenue management."
Sean O'Neill | 1 day ago