Virgin Atlantic urges government to reverse course after pound slump

Virgin Atlantic has urged the government to reverse course after the mini-budget, with the collapsing pound driving up costs for airlines.

The chief executive, Shai Weiss, said the economic situation was hurting consumers and the airline was deeply concerned, even though it believed its own bookings would hold up.

Weiss said the airline had consolidated its sterling holding into dollars several months ago, a smart financial position that was now worth a lot of money and protecting it from the currency shock. A majority of the company's outgoings are in dollars, mainly in aircraft purchases and jet fuel.

Weiss said the prime minister, Liz Truss, should take a difficult decision to boost the pound after the slump from Friday s tax cuts to be financed by additional government borrowing announced by the chancellor, Kwasi Kwarteng.

He said at a press conference in London that the pound is hurting, not Virgin Atlantic, it is hurting the economy and hurting consumers because it is actually fuelling the inflation vicious cycle that we're in.

The message to government is clear in my mind. It is important to make a more difficult decision to reverse the declining pound and make sure that this country is not left with unsustainable weakness in international markets, which will affect interest rates, impact mortgage rates and affect the entire economy.

We are concerned with the economic environment in which we operate, like everyone else in this country. Weiss said leaders should be humble enough to say: If I did something that is not working, maybe I should reverse course. He said that if this is the response to your decisions, reversal is also included. They have to stabilise the economic affairs of this country, because we have the worst performing currency in the G 7; we don't have to be at the bottom of the pile. Sales to US-based customers have grown to about 30 -- 35% of Virgin Atlantic's total revenues since its joint venture with Atlanta-based Delta, Weiss said, and he anticipated that increased bookings from the US would cushion the airline.

Weiss said the UK was effectively on sale for inbound tourists, despite the fact that the pound was almost at par with the dollar. If you want to see the new King for half price, fly Virgin Atlantic, he said.

A new route, to Tampa from Heathrow, will be launched next month, using its new A 330 neo plane, as a 70% of Virgin traffic is transatlantic.

After years of speculation, Virgin has joined the SkyTeam airline alliance. The airline said it would open more routes, benefits and lounges for its customers.