Virgin labels Heathrow head ‘Lord Doom’ over cautious outlook

Virgin Atlantic Airways Ltd. Chief Executive Officer Shai Weiss labeled his counterpart at London Heathrow airport “lord doom” over his suggestion that a recovery in UK travel may take until the end of next year.

Heathrow CEO John Holland-Kaye’s prediction that it will be 12 to 18 months before the aviation industry fully recovers capacity is “just ridiculous” and amounts to a “cynical” attempt to justify a hike in the hub’s fees, Weiss said in an interview at the airport Wednesday.

Virgin Atlantic’s passenger capacity will be at 102% of 2019 levels by the fourth quarter, with full-year revenue likely to reach 90% of the pre-pandemic total, Weiss said. While inflationary pressures and higher household bills may be a factor in limiting growth, he said the carrier still expects to post a profit next year, in line with previous forecasts.

“Who talks down their own book?” Weiss said of Holland-Kaye’s comments at a Financial Times conference Tuesday, where he reiterated an earlier prediction that a summer boom may not be sustained. “There will be families and business people looking at this and asking if they really need to travel. I was so surprised to read the headlines. It’s nothing that we’ve ever talked about with them.”

The hub is lobbying the aviation regulator to allow it to raise fees to around 42 pounds per passenger—more than an earlier Civil Aviation Authority proposal—while airlines want to limit increases. 

Heathrow’s press office didn’t immediately respond to an email seeking comment.

Airport Turmoil

Virgin Atlantic has been spared the turmoil and cancellations that have afflicted other airlines and airports in recent weeks after avoiding staffing shortages, even after it cut 45% of staff during the pandemic, Weiss said. that’s partly because ex-workers were allocated to a pool for rapid rehiring, but also because the brand remains a draw in the labor market, he said.

At the height of the pandemic, Virgin Atlantic underwent a court-supervised restructuring, saved by a 1.2 billion-pound rescue from lenders backed by owners Richard Branson and Delta Air Lines Inc. The group required a further 400 million pounds from the shareholders in December to see it through the omicron outbreak, after putting off plans for an initial public offering.

Virgin’s statutory loss for 2021 narrowed 44% to 486 million pounds, with sales at one-third of pre-crisis levels. While the company has doubled down on US markets, much of its Asian network remains closed.

Weiss, who revealed last week that he’s battling colon cancer, said he went public with the disclosure to scotch any rumors about his future at the airline.

“My job here is only half done and I plan to see it through,” he said.