During its annual earnings call discussing 2024 earnings, Virgin Atlantic revealed it has seen a short-term slowdown in leisure travel on its transatlantic flights, particularly from passengers originating in the United States. That’s an expected development with an unexpected twist.
Virgin Atlantic Reports Transatlantic US Leisure Slowdown
Virgin Atlantic published its 2024 earnings earlier today and the British carrier was profitable for the first time since the pandemic, though reported a profit of only 20 million USD.
On the heels of joint venture and SkyTeam partner Delta Air Lines slashing its earnings earlier this year, Virgin Atlantic announced that it is seeing a weakening in demand too. Specifically:
- This weakening demand is for traffic originating in the United States
- Most weakness is for short-term spring travel, not summer or autumn travel
- Corporate travel appears to be unaffected (steady and even growing)
During an earnings call, Chief Financial Officer Oli Byers explained:
“When we say signals of a slowdown in demand…we’ve had weeks where it’s been flat, we’ve had a few weeks where it’s been negative.”
Interestingly, it appears it is leisure travel that has seen the dip in demand. Factors to blame include economic uncertainty on both sides of the Atlantic over national economies and US tariffs. Byers added:
“We think that’s quite a natural reaction to the general consumer uncertainty there is in the U.S. at the minute.”
One Mile At A Time says, “For many Americans, a summer vacation in Europe has become a non-negotiable, which is very much a post-pandemic trend.”
To some extent, I think he’s right…that’s true for me (though I’m doing it to visit family and promote my children’s German language skills, not to “keep up with the Jones”) and I tend to think that we’d continue to find a way to get to Germany even if my pocketbook took a big hit due to the uncertain economy.
On the other hand, while I think many Americans who might be scraping by will be willing to put the European vacation on their credit card and pay it of over time, there will certainly be some who will not do this…who will hold back and not commit to price trips due to the uncertainty.
It’s interesting to me that the demand is short-term. Just a month ago, United said it was seeing healthy spring break demand to London.
CONCLUSION
Virgin Atlantic has reported eroding demand, particularly on leisure travel from the US to London. Meanwhile, the carrier reports corporate demand is strong and growing, though not enough to offset an overall dip in demand.
Virgin’s route network is so US-dependent that I am not surprised to see it report dipping numbers first. The real thing to watch, however, will be to see if this is an early barometer of what is to come, or an outlier.
image: Virgin Atlantic
I’ll call out the elephant in the room: Europeans are understandably angry at the USA and the people who voted in our beloved ruler. They have a war of aggression on their continent and instead of standing with them for freedom and democracy we’re pretty much siding with the invader. Not to be left out on the invasion considerations, we’re also threatening to invade our allies when they have something our king wants. Is it truly surprising that some people choose not to visit Europe when we’re suddenly intensely unpopular? It’s a concern for me with two planned trips for this year.
Then tell the Eurotrash to start paying their fair share of NATO. If it wasn’t for the US they would all be living under REAL Nazi’s, not the type today’s leftist pussies call those they disagree with. You know the type, the ones who killed Jews. Actually that is the type people today’s left supports, they just moved to Palestine now.
Because Nazis didn’t kill anyone other then Jews?
Most all Jews in camps died from typhus. Many died indirectly or directly from allied airplanes.
go to holocausthandbooks dot com to learn more.
Most transatlantic leisure travel from the US to the UK for early to mid March was likely booked before this January’s recent leadership change in the US.
IMO, the dip in demand for March is likely indicative of conditions that were present before the end of January 2025.
I think there will be worse things to come due to the new economic uncertainty. In my industry there are a lot of people who are uncertain if they will be continuously employed for the next 12 months. I think this uncertainly will create a palpable impact on demand for things like transatlantic leisure flights.
What freedom and democracy are you talking about? Romania cancelled a Presidential election and banned the most popular candidate because they didn’t like he is critical of NATO and the Ukrainian grift. Ukraine jails people for criticizing the government and changed its constitution to ban elections during war time. Europe jails people for complaining about open borders and violent migrants on social media.
You have it backwards. Most European governments are fighting against freedom and democracy and for EU tyranny.
You’re right, poor Russia who invades countries because it wants what they have is the victim in all this. Dude, where do you get your info? I thought 4Chan was shut down.
Please explain to me how Russia is more free than the EU, with verifiable facts.
Russia is more free than the EU ….. to throw its own citizens out of windows high up. There is no rule of law in Russia beyond that wanted by Putin, and that means Russians and others get killed or gulag-ed when Putin wants it. Putin’s pet, MAGA Lord Trump, wants the same powers of extrajudicial killing and lawless locking up of people in/from the US too.
Most countries’ economies are all taking a dip. I’d argue that we’re finally seeing the numbers dwindle as the covid money is starting to run out for most Americans (the economy has not been good the past 1.5 years in our country as well, and this is strictly based the Fed continually revising numbers of previous quarters and I am barring all politics for this comment).
It’s all part of a cycle. Economy goes bad, people then collectively try to make choices that will improve it, then it goes on a good run, then bad decisions end up tanking it.
I was laughing a bit at Ben’s comment about Europe being somehow a mandatory right of passage each year for Americans. Assuming he lives a bit in a bubble?
Personally I don’t think the ex EU to U.S. leisure bookings are yet to really reflect the coming storm. July and August are going to be the true test. Those bookings will probably soon start coming online and by the end of this month I am betting airlines will be seeing a massive drop off. With so many countries now issuing warnings about travel to the U.S. and the hatred that most countries have towards M’erica the turn is going to happen. Bigly.
Of course, in 2026 when the Civil War starts, travel will really come to a grinding halt. Other than Trump running from the country in his Qatari 747-8
For those from upper income “coastie” families, it seems to be sort of a given.
Data suggests this weakness in demand (relative to trend) is on the ex-US side NOT ex-Europe. Data also suggests this is not limited to VS. good luck in your battle vs rev mgt machines.
Britain jails its citizens for complaining about Muslim rape gangs on social media. No wonder travel demand from the U.S. is softening
ROTFL, you’re repeating Convicted Criminal Trump and the lout Vance’s nonsense.
Grow up.
Your pants caught on fire with your lies about that. Make sure to have a urologist check out whether your private parts work after being burned to ash by your liar, liar, pants on fire problem.
[The urologist may help you find a gynecologist to help with post-op transitioning if you lost what little man mojo you had left and want to go down that course.]
Commenting about D.A.’s underpants and the rest going up in flames with the liar’s pants on fire.
I wonder if demand includes for award tickets. Since they went to dynamic pricing, I would think fewer people are booking with points.
A slowdown in Trans_Atlantic travel? Now there’s a surprise.
Convicted Criminal Trump and the suited, ill mannered lout, Vance are doing their utmost to alienate and make unwelcome Europeans of any nationality and now it’s news that people don’t want to visit the third world country they are running. I really don’t understand why people are surprised.
Enjoy Trumpton and keep it all to yourselves.