Preliminary demand for Virgin America's new business traveler-focused
fare bundle is "encouraging," CEO David Cush said during the
carrier's fourth-quarter earnings call.
Last week, Virgin America unveiled its Power Trip fare
bundle, which combines perks the carrier said were in most demand by business
travelers, including a change fee waiver, a checked bag, access to preferred
seats at booking and priority status for security and boarding.
The carrier expects to drive more ancillary revenue through bundles
this year, though it does not plan to introduce what Cush called an
"economy minus" fare like Delta Air Lines' Basic Economy fare and
similar products expected from United Airlines and American Airlines.
Virgin America's fourth-quarter passenger revenue increased
4.6 percent year over year to $347.7 million. Capacity increased 10.3 percent
during the quarter, and traffic increased 10.1 percent. The carrier's load
factor declined 0.1 percentage points to 81.1 percent.
The carrier reported a fourth-quarter net income of $190.9
million, which included a more than $170 million income tax benefit. Excluding
that and other special items like a write-off of maintenance deposits, net
income nearly doubled that of the fourth quarter of 2014. As across the
industry overall, Virgin America's costs have declined significantly owing to
lower fuel prices.
For the full-year 2015, Virgin America reported
a net income of $340.5 million compared with $60.1 million in 2014.