Delta Air Lines expects Virgin Atlantic Airways to return to profitability in 2014, executives say today.
The comments during the Atlanta-based carrier’s 2013 earnings call come three weeks into the carriers’ metal neutral joint venture between the USA and UK, where they are already reaping revenue benefits.
Ed Bastian, president of Delta, says that the Delta-Virgin Atlantic codeshare generated about $25 million in additional revenue for the former during the second half of 2013.
The codeshare began in July 2013.
Delta executives anticipate about $50 million in run-rate revenue improvements from the synergies of the Delta-Virgin Atlantic joint venture in 2014, they say.
The carriers plan to implement a coordinated schedule between New York and London in March, and Delta will move its Boston, New York and planned Seattle flights to terminal 3 at London Heathrow airport in April.
Craig Kreeger, chief executive of Virgin Atlantic, has said that he anticipates the airline to return to profitability during its 2014 fiscal year, which ends in February 2015.
The UK-based carrier reported a pre-tax loss of £69.9 million ($115.8 million) for its fiscal year that ended in February 2013.
Delta bought a 49% stake in Virgin Atlantic for $360 million in June 2013.