All is not morose in the leisure industry

Virgin Atlantic has managed to nearly double its pre-tax profits in the toughest trading environment of its 25-year history.

The airline grew profits from £34.8 million last year to £68.4 million for the year from March 2008 to February 2009.

It said the growth was down to a rise in premium travellers and “prudent management decisions”.

Group sales, including its tour operator business Virgin Holidays, rose 8.4% from £2.380 billion to £2.579 billion.

The total number of passengers carried during 2008 increased to 5.77 million.

Virgin employees will benefit from a bonus payout, as 10% of the group’s profits is shared among staff.

President Sir Richard Branson said: “The last financial year has proven to be the most volatile yet in our 25-year history. To increase profits against a backdrop of such a severe recession is an excellent achievement by all of our staff.”

The results are in stark contrast to other airlines, including rival British Airways which reported an annual loss before tax of £401m last week (see separate story today).

BA said premium traffic had fallen by 13% in the second half of its financial year.

Virgin chief executive Steve Ridgway added: “We are winning market share from our competitors during the toughest trading environment ever.”