Virgin Atlantic Airways Limited, operating as Virgin Atlantic, has achieved a 38% increase in profits for the 2007-2008 financial year, with a net profit of £47.7 million ($88.32 million). The company, in a statement, said that the surge in profits was mainly on account of growth in the sale of business-class seats.

The number of premium-class passengers rose by about 22% over the previous year, even as Virgin Atlantic competed for a share of this market with British Airways and other major airlines, the company said.

In all, Virgin Atlantic’s passenger numbers for the year totalled 5.7 million – an increase of 7.6% over the preceding year.

The results for the 2007-2008 financial year excluded a £32-million charge relating to the settlement of a class-action lawsuit after Virgin Atlantic and British Airways admitted to colluding over fuel surcharges on long-haul flights between August 2004 and January 2006.

Virgin Atlantic’s 2007-20o8 profits largely due to sale of business class seats

Virgin Atlantic, owned by Richard Branson’s Virgin Group (51%) and Singapore Airlines (49%), operates long-haul routes between the United Kingdom and North America, the Caribbean, Africa, the Middle East, Asia, and Australia from its main bases at London’s Heathrow Airport and London’s Gatwick Airport. It has a smaller base at Manchester Airport. The company holds the British Civil Aviation Authority’s Type A Operating Licence, which permits it to carry passengers, cargo, and mail on aircraft with 20 or more seats.

The rise in passenger numbers, according to Virgin Atlantic, was also partly owing to the addition of several new routes from London’s Heathrow Airport to destinations like Chicago, Mauritius and Nairobi, as well as the introduction of a new service from London’s Gatwick Airport to Kingston in Jamaica.

The new routes helped increase Virgin Atlantic’s passenger numbers to 5.7 million, up by 7.6%, compared to a year before. From January 2008, the airline has been operating a direct service between Glasgow in the United Kingdom, and Orlando in Florida, the United States.

Virgin Atlantic has been vehemently opposing the proposed alliance between British Airways, the national airline and flag carrier of the United Kingdom and one of the largest airlines Europe, and the United States-based American Airlines, the world’s largest airline.

Sir Richard Branson, president of Virgin Atlantic, commented on the airline’s remarkable financial results: “Our results prove that consumers want choice on transatlantic routes. Unless the regulators block the proposed British Airways/American Airlines monopoly, consumers will lose out – and they’ll pay higher ticket prices for the privilege.”

The surge in profits is to benefit the 8,000-plus employees of Virgin Atlantic, who each receive the equivalent of one and a half week’s extra pay. The Virgin Group shares 10% of its among its staff.