Richard Branson's Virgin Atlantic Airways posted a doubling in yearly profits today after attracting more businesses travellers.
Virgin's annual results came amid an investigation into alleged cartel activity over airline fuel surcharges that was opened following a tip-off by Virgin to British regulators.
Virgin, which competes with British Airways for premium-paying passengers, said its business passengers rose 10 per cent in the year after it launched new upper-class facilities.
The airline, 51 per cent owned by Sir Richard and 49 per cent by Singapore Airlines, also launched new routes to India and the Caribbean in the year, which helped offset a 30 per cent jump in fuel costs and tough transatlantic competition.
Profit before tax and exceptionals for year ending February 28th rose to £41.6 million ($76.1 million), the airline said. Revenues increased 17 per cent to £1.9 billion and passenger numbers rose 11 per cent to 4.9 million.
Virgin approached Britain's Office of Fair Trading about alleged conversations between a BA executive and one of its staff last year to sound out plans to increase fuel surcharges on long-haul flights, a source said.
The civil and criminal inquiry into an alleged cartel was announced last week after regulators raided BA's offices. BA put two senior executives on leave. American Airlines and United Airlines said they were co-operating with the inquiry but were not targets.