Start up airline, Virgin America says that due to higher fares it’s making money for the first time. The CEO claims the company plans to expand its fleet aggressively next year and hopes to expand to Chicago and Newark, N.J.
The 3-year-old low cost carrier backed by Richard Branson said Tuesday it gained $7.5 million in the July-through-September period, compared with a loss of $5.9 million last year.
Revenue increased 28 percent to $202 million, and revenue per mile flown increased 17 percent, which CEO David Cush says is a result of higher fares.
Cush says the company has 28 planes but plans to end 2011 with 40.
Source: Bloomberg Businessweek