Virgin America reported its financial results for the fourth quarter and full year 2014. Total operating revenue was $372.2 million, an increase of 3.4 percent over the fourth quarter of 2013.
Article continues below
Revenue per Available Seat Mile (RASM) increased 3.7 percent compared to the fourth quarter of 2013, to 12.23 cents.
Year-over-year RASM growth was driven by a 2.7 point increase in load factor, offset partially by a 1.8 percent decline in yield, and also by a 25.5 percent growth in other revenue attributable to Virgin America's new co-branded credit card agreement that was implemented in early 2014 and strength in other ancillary products.
Total Cost per Available Seat Mile (CASM) excluding special items increased 0.7 percent compared to the fourth quarter of 2013, to 11.10 cents. CASM excluding special items, fuel costs and profit sharing for the quarter increased 4.2 percent year-over-year, to 7.16 cents.
Virgin America realized an average economic fuel cost per gallon including taxes and the impact of hedges of $2.87, which was 8.9 percent lower year-over-year. This amount excludes $2.8 million of mark-to-market costs for fuel hedges that will mature in 2015 and which did not qualify for hedge accounting treatment.
Fourth quarter 2014 operating income excluding special items increased by 45.1 percent over the fourth quarter of 2013 to $34.2 million. The company's operating margin excluding special items of 9.2 percent improved by 2.6 points year-over-year.
Net income excluding special items for the fourth quarter increased 98.4 percent year-over-year, to $28.1 million. The company's IPO and related reduction in outstanding debt resulted in a $3.2 million decrease in net interest and other expense, contributing to the strong improvement in net income.
Fully diluted earnings per share was $0.16 for the fourth quarter of 2014 on a GAAP basis. Excluding special items, fourth quarter 2014 fully diluted earnings per share was $1.16.
Available seat miles (ASMs) for the fourth quarter of 2014 decreased 0.3 percent year-over-year. The airline ended the quarter with 53 Airbus A320-family aircraft.
Unrestricted cash was $394.6 million as of December 31, 2014.
2014 full year net income of $84.4 million, excluding special items. Full year net income increased by $74.2 million over 2013 – a seven-fold increase, and was the highest in the Company's history. Operating and net income on a GAAP basis for the full year 2014 were $96.4 million and $60.1 million, respectively.
2014 full year RASM increased 4.6 percent compared to 2013, to 12.17 cents.
The company expects capacity, as measured by available seat miles, to increase by approximately 2.0 percent to 3.0 percent for the first quarter of 2015 as compared to the first quarter of 2014. Based on current revenue trends, the company expects PRASM to change between -1.0 percent and +1.0 percent versus the first quarter of 2014.
The company expects CASM excluding fuel and profit sharing to increase between +1.0 percent and +3.0 percent versus the first quarter of 2014. ■