Virgin Atlantic Agrees GBP1.2 Billion Financing Over Next 18 Months

   By Ian Walker

Virgin Atlantic said Tuesday that it has agreed a 1.2 billion-pound ($1.51 billion) refinancing package over the next 18 months and five-year restructuring plan, boosting its balance sheet and paving the way for it to return to profit from 2022.

The airline--which was founded by entrepreneur by Richard Branson 36 years ago--said the financing has the support of existing shareholders Virgin Group and Delta, as well as its creditors and private investors.

Virgin Atlantic said that flying fell by 98% in the second quarter of this year as planes were grounded due to the coronavirus pandemic, and that capacity for the second half of the year is expected to fall by at least 60% compared with 2019. It added that capacity is unlikely to return to pre-virus levels until 2023.

"The solvent recapitalization of Virgin Atlantic will ensure that we can continue to provide vital connectivity and competition to consumers and businesses in Britain and beyond," Virgin Chief Executive Shai Weiss said.

Write to Ian Walker at ian.walker@wsj.com

(END) Dow Jones Newswires

July 14, 2020 10:08 ET (14:08 GMT)

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