(Bloomberg) -- Virgin Atlantic Airways Ltd. sees very robust demand for travel in its business and premium economy cabins this winter, as fliers continue to spend on luxury travel.
While economy demand was “slightly weaker,” it was in line with the carrier’s expectations with fares “relatively stable,” Virgin’s Chief Executive Officer Shai Weiss said in an interview on Monday. The carrier has between zero and two Boeing Co. 787s grounded due to issues with their Rolls-Royce Holdings Plc engines, although Weiss doesn’t expect the grounding to impact fares.
Airlines on both sides of the Atlantic are seeing continued demand for premium travel. Last week, Delta Air Lines Inc, which part owns Virgin Atlantic, said it would expand its premium seating and expects millennial travelers to buy many of those pricier tickets.
Virgin, along with larger rival British Airways has been forced to scrap some routes next summer due to a shortage of aircraft caused by 787 maintenance. Virgin has said it would delay the restart of services to Tel Aviv and a new service to Ghana due to a lack of planes.
The airline expects the issues with the Trent 1000 engine to persist for the whole of 2025, Weiss told the Airlines 2024 conference in London on Monday, adding that the matter is for Rolls-Royce to fix. Virgin is working to ensure it is “adequately compensated” for the grounding, Weiss said.
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