PRESS RELEASE Embargo: 13:00 Thursday 16th May 2013 VIRGIN ATLANTIC 2013 FINANCIAL RESULTS Virgin Atlantic

Ltd today reported its financial results for the year ending 28th February 2013. In its accounts, the Group showed increased revenues but highlighted rising costs which impacted significantly on overall performance: A Group pre-tax loss of 69.9m which comprises an airline loss of 93m and takes into account a one-off positive 35.4m exceptional item and 23.1m in other Group income Revenue increased by 5% to 2.87bn Improved airline load factors to 79% (up by 1.3%) Continued strong cash position of 412.3m 5.5m passengers flown by the airline, an increase of 188,000 year on year Nearly 90,000 extra passengers carried across Premium Economy and Upper Class, a 9.2% rise year on year 100,000 extra passengers carried in Economy Customer satisfaction and loyalty scores have all improved, with Economy satisfaction scores at a five year high Record levels of overall on time performance achieved. The number one airline in punctuality performance at Heathrow on the majority of its routes and out-performing its key competitor in 11 out of 12 months 150 flying jobs created Cargo had a healthy turnover of 230m and performed well in a global market that showed decline Virgin Holidays continues delivering profit and strengthening its distribution position, with a 6% year on year increase in forward sales for 2013/14. It opened its 100th shop, and created over 135 new jobs and apprenticeships in the past year

Virgin Atlantic Chief Executive Craig Kreeger is committed to returning the airline to profit within two years. Kreeger, who joined Virgin Atlantic on 1st February, outlined his programme to transform the business with a focus on network, alliances and reducing operational costs whilst continuing to invest in leading customer experience. Virgin Atlantic Chief Executive Craig Kreeger said: Last year saw a double dip recession, a continued weak macro economy, and an Olympic Games which, although a fantastic event, severely dented demand for business travel. Despite these challenging circumstances, the enduring strength of the Virgin Atlantic brand has not wavered we have increased our revenues, our load factors, and carried many more passengers than the previous year. Virgin Holidays continues to be the UKs preferred choice in long-haul trips worldwide, and has furthered its investment in product, customer service and the UK high street by opening innovative retail stores and creating jobs in city centres around the country.

Virgin Atlantic has a programme of measures going forward which I am confident will improve our financial performance considerably in 2013/14 and put us firmly on the road to a return to profit in spring 2015. We have a clearly defined strategy which encompasses four key areas of the business and will make a significant contribution to the airlines financial performance going forward: 1. Virgin Atlantic Little Red: Our recently launched domestic airline provides a network operation for the first time. This marks a step change in Virgin Atlantics business model and will drive feeder traffic onto our long haul destinations. Already 27% of Little Red passengers are connecting onwards with Virgin Atlantic at Heathrow and with up to a million passengers a year forecast to fly with Little Red, this will be a significant revenue generator for the business 2. Delta Joint Venture: The joint venture with Delta Airlines will form a strong alliance in a competitive transatlantic market. The alignment with Delta will give Virgin Atlantic passengers greater connectivity throughout North America meaning a more attractive offering and, crucially, will greatly enhance Virgins sales base and revenue opportunities across the US corporate and leisure markets 3. Changes to the fleet: This year will see the first full year impact of operating all ten of our A330-300s which are 15% more fuel efficient per passenger than the aircraft they replace. We will also see the arrival of the first Dreamliner 787-9s in 2014 4. Cost savings: We have launched a series of efficiency initiatives with a target for delivering 45m in financial improvements in the current fiscal year. We will focus on non-customer facing back-office operations including IT systems and e-commerce, alongside enhanced cross-functional working practices The past financial year was one of significant expansion for Virgin Atlantic, with three new routes added to the network and preparations made for the launch of Little Red. At the same time, significant investment was made in core product and service to support future revenue growth; with two new Clubhouses in New York, the refurbishment of the Boeing 747 leisure fleet and the completion of a roll out of Airbus A330s which carry a new Upper Class Suite. I am confident we have concrete plans in place to take Virgin Atlantic forward and return the business to profitability within a two-year time frame. The commitment of our staff and loyal customer base is not to be overlooked and as a brand with high advocacy we will continue to innovate and inspire in true Virgin spirit. ---Ends--For media enquires please contact Virgin Atlantic UK Press Office: 01293 747 373 Notes to editors: New routes added in 2012: Vancouver, Cancun and Mumbai Record breaking year in Free the Children donations: 1.5m with a 7% increase in onboard passenger donations YoY