by Zacks Equity Research Published on
Virgin America Inc. is set to announce its second-quarter 2015 financial results before the opening bell on Jul 30.
In the last quarter, the company posted a 71.43% surprise. Let’s see how things are shaping up for this announcement.
Factors at Play
Virgin America continues to benefit from route expansion, efficient customer service, and launch of ancillary products and services. Moreover, low fuel prices continue to boost profits for the company. Meanwhile, Airlines for America (“A4A”) – the trade organization for leading U.S. airlines – has forecasted that nearly 222 million passengers will be availing the services of U.S. airlines between Jun 1 and Aug 31. Also, record growth in passenger count will certainly drive Virgin America’s air traffic going forward. However, Virgin America’s air traffic for June had declined. Moreover, the load factor or percentage of seats filled by passengers dropped to 85.6% in Jun 2015 from 86.1% a year ago. We believe that stiff competition from low-cost carriers may be the reason for such dismal air traffic numbers. Read Full Article >>