Here’s an interesting take on it though…

Virgin shareholder SIA views full-year performance differently
David Kaminski-Morrow, London (26May09, 22:12 GMT, 260 words)

Virgin Atlantic Airways’ disclosure today of an increased pre-tax profit appears at odds with the financial performance of the company as seen by investor Singapore Airlines, which owns 49% of the UK long-haul carrier.

While Virgin declared that it doubled its pre-tax figure to more than £68 million ($108 million) in the year to February 2009, Singapore Airlines points out that Virgin does not apply international financial reporting standards (IFRS) but instead still prepares its accounts under UK generally accepted accounting principles (GAAP).

Singapore Airlines, in its own recently-released full-year figures, stated that its associated companies lost S$106 million ($73 million) in the fourth quarter to March 2009.

“That’s largely coming out of our investment in Virgin Atlantic,” said Singapore Airlines senior vice-president for finance Chan Hon Chew.

Chan added that, as a private company, Virgin Atlantic was able to prepare its finances under GAAP, while listed European Union companies must use IFRS.

Singapore Airlines chief Chew Choon Seng pointed out that Virgin Atlantic contributed S$400,000 ($276,000) over the two halves of the year because it was responsible for a “big part” of the first-half share of profits from associates.

Virgin’s statement on its financial performance today does not indicate the accounting standard used.

But the airline says it generated the pre-tax profit of £68.4 million, up from £34.8 million in the previous year, despite the volatile price of fuel.

Virgin Atlantic has not disclosed a figure for retained profit for the year in its statement. For the previous financial year it posted a retained profit of nearly £48 million.

Source: Air Transport Intelligence news