Virgin Atlantic returns to skies bracing for three-year slump

Virgin Atlantic Airways, fresh from getting a $1.5b rescue package Tuesday, is anticipating a sluggish recovery in air travel that won’t see demand returning to 2019 levels for at least three years. The British carrier founded by Richard Branson is resuming passenger flights next week with trips to Hong Kong, New York and Los Angeles. Widespread border restrictions and a UK quarantine for most long-haul arrivals mean “it’s basically essential travel only,” Chief Customer Officer Corneel Koster said. “Bookings initially are looking limited and load factors will be relatively low,” Koster said. “We do believe there is pent-up demand out there. But we don’t know when our major market to and from the US will open. And corporate demand will take time to recover.” Virgin Atlantic is clawing its way back from the brink of failure after securing a package including GBP200m from Branson and GBP170m from hedge fund Davidson Kempner Capital Management. The carrier, which was refused a state bailout, is now “funded and prepared for all scenarios,” Koster said, whether the reopening of the crucial North Atlantic market takes weeks or months. “We are going to take it one step of a time,” he said. “We think it will take at least three years to get back to 2019 levels.”<br/>