Robert Besser
05 Apr 2025

LONDON, U.K.: Virgin Atlantic is seeing signs of cooling demand from U.S. travelers heading to the UK, a shift that comes after a strong start to the year and growing economic uncertainty in the United States.

The airline, known for its transatlantic routes, said recent weeks have brought a dip in bookings from the U.S., following a similar warning from its shareholder, Delta Air Lines, which earlier this month downgraded its profit expectations due to softening consumer and business confidence.

"When we say signals of a slowdown in demand... we've had weeks where it's been flat, we've had a few weeks where it's been negative," said Virgin Atlantic chief financial officer Oli Byers this week.

"We think that's quite a natural reaction to the general consumer uncertainty there is in the U.S. at the minute."

Delta had cited concerns about tariffs and inflation in the U.S. economy when it issued its profit warning on March 10. The airline industry has been closely watching signs of hesitancy among American travelers, particularly for international routes.

Despite the recent slowdown, Byers said Virgin Atlantic still anticipates revenue from U.S.-to-UK travel will grow in 2024 compared to last year. Demand for travel in the other direction—from the UK to the U.S.—remains solid.

"We're seeing corporate demand being very robust and still growing significantly," he added.

Shares in International Airlines Group, the parent company of British Airways and a rival on many of the same transatlantic routes, dropped 6 percent in early trading on March 31 following Virgin's comments.

Virgin Atlantic reported a return to profitability in 2024 for the first time since the pandemic, posting a pre-tax profit before exceptionals of £20 million (US$25.9 million), compared to a £139 million loss the previous year.

However, the carrier was also hit by a significant disruption at its central hub, Heathrow Airport, earlier this month, which forced it to cancel 75 flights and divert six more.

"The cost for the home-based carriers is going to run into the tens of millions," Byers said, though he declined to specify the financial impact on Virgin Atlantic itself.