Virgin America narrows quarterly loss, reports first operating profit

Virgin America reported a $5.9 million loss in the third quarter, narrowed significantly from the $59.1 million deficit in the year-ago period, and reported its first three-month operating profit since launching service in August 2007.

"At a time when flyers are more discerning than ever, it is clear that our low fares, award-winning guest service and innovative amenities continue to convert a growing network of loyal travelers," CEO David Cush said. VX's improvement came during a rough quarter in the US when the nine largest airlines reported an aggregate $578 million loss and only AirTran Airways, Alaska Air Group and JetBlue Airways were in the black.

VX's revenue rose 38.3% year-over-year to $157.9 million and expenses were cut 9.3% to $152.8 million, leading to the operating surplus of $5.1 million, reversed from a $54.3 million loss in the 2008 third quarter.

The carrier said traffic surged 45% against a 37.4% lift in capacity to 1.78 billion ASMs, lifting load factor 5.2 points to 86.6%. Unit revenue was up 0.7% to 8.87 cents, while operating CASM was slashed 33.9% to 8.59 cents, or by 24.4% to 5.96 cents excluding fuel. Flights to Fort Lauderdale, its 10th destination, began in November.