Can Virgin America Succeed In Targeting Corporate Travel?
Skift Take
Virgin America has already taken advantage of consolidation among the US majors by focusing on major markets, and that means more share of corporate travelers, but it will have tough going against bigger pockets.
Virgin America will be well pleased with its timing in accessing the public markets as airline stocks are currying favor with investors after consistent capacity discipline and lower fuel prices have drawn attention to airline stocks, driving up the sector’s performance during CY2014.
The airline is enjoying a trading price well above expectations after recording a profit for the third quarter and the nine months ending September 2014, setting the stage for its second consecutive year of profitability. Much of Virgin America’s recent financial success rests on capacity reductions and debt restructuring, so arguably the real test of its ability to generate profits is yet to unfold.
Virgin America becomes a newly traded publ
