Virgin Atlantic IPO Now Expected In Early 2022

Virgin Atlantic plans to delay its initial public offering (IPO) until early 2022, with the airline instead focusing on the newly-reopened transatlantic market. Virgin had initially planned its listing for this autumn but will now prioritize its transatlantic sector after the U.S announced it will allow fully vaccinated travelers in from November.

Virgin Atlantic isn’t planning an IPO until early 2022. Photo: Getty Images.

Virgin Atlantic IPO delayed until 2022

Virgin Atlantic no longer plans to launch an IPO this year, with reports suggesting it will come sometime in early 2022. As Simple Flying reported last month, Virgin Atlantic has been planning a stock market listing and was considering it as soon as this autumn.

Instead, the airline will focus on rebuilding its business with transatlantic travel opening up again. Last week, U.S President Joe Biden announced the country would allow fully jabbed travelers in from November.

The airline will focus on rebuilding its transatlantic market before a stock market listing. Photo: Vincenzo Pace | Simple Flying

With its biggest market closed for the majority of the pandemic, Virgin Atlantic has suffered more than most airlines financially, posting losses exceeding $900 million for 2020. The airline has forecast that its total losses for 2020 and 2021 will exceed $1 billion before becoming profitable again through 2022.

Virgin Atlantic feels it can better attract investors with a rejuvenated business and will now delay its IPO until early 2022. The airline, 51%-owned by UK entrepreneur Richard Branson and 49%-owned by Delta, has never issued stock to the public in its 37-year history.

Alternative funding on the table

Virgin Atlantic is eager to acquire more funding and take advantage of market opportunities as the aviation industry rebounds. According to a source close to the matter, the airline is still considering other forms of funding in addition to its IPO. Virgin has yet to officially comment on its IPO plans.

Virgin Atlantic received a $1.65 billion bailout last year. Photo: Getty Images.

Additional funding would also act as a financial buffer should Virgin’s network be disrupted again by new travel restrictions. According to Virgin, the airline received a 600% surge in bookings on the day the U.S announced it would allow vaccinated travelers into the country.

Virgin’s vaccination requirements

As many airlines around the globe require their crews to be fully vaccinated, Virgin Atlantic has announced it will only hire staff that have received both doses of the vaccine.

A spokesperson for Virgin Atlantic said,

“To ensure the continued health, safety and protection of our customers and people and to take advantage of the benefits of the UK’s world-leading vaccination programme, we will require any cabin crew or pilots joining the business to be vaccinated. This is in line with other global airlines, including our partners at Delta.”

The airline will now hire only double-jabbed employees and encourages existing staff to get vaccinated. Photo: Vincenzo Pace | Simple Flying

While the airline hasn’t gone so far as to mandate vaccination for existing staff, it ‘strongly encourages’ employees to get the jab. Other airlines in the UK, including British Airways and easyJet, have adopted a similar policy of encouraging the jab but not mandating it for staff.

Are you happy to see transatlantic travel opening up again? Do you see Virgin Atlantic running a profit in 2022? Let us know your insights in the comments.

from Simple Flying https://ift.tt/39Rt86Z
via IFTTT