Virgin America Responds to Rising Fuel Costs

Carrier Announces Fuel Surcharges in Response to Skyrocketing Oil Prices


SAN FRANCISCO, June 11, 2008 (PRIME NEWSWIRE) -- In response to the unprecedented rise of oil prices and volatility in the energy sector, Virgin America has announced fuel surcharges in all of its markets, effective immediately.

"The volatility in the worldwide oil market has made it increasingly difficult for carriers like us to accurately or fairly factor fuel costs into ticket prices," said Virgin America's Vice President of Planning and Sales, Diana Walke. "Similar to standard practices in markets around the world, our aim with these fuel surcharges is to reflect this volatility, regardless of whether fuel prices go higher or lower."

Virgin America is introducing fuel surcharges to its existing fare structure as follows, effective immediately:


 * $10 in short-haul markets: San Francisco (SFO) to Los Angeles
   (LAX), SFO to San Diego (SAN), SFO to Las Vegas (LAS), SFO to
   Seattle (SEA), LAX to SEA, SAN to SEA (connecting) and LAS to SEA
   (connecting).
 * $25 in all long-haul markets:  SFO to New York (JFK), SFO to
   Washington (IAD), LAX to JFK, LAX to IAD, JFK to SEA (connecting),
   SEA-IAD (connecting), LAS-IAD (connecting), SAN to IAD
   (connecting), JFK to SAN (connecting) and JFK to LAS (connecting).

At current oil prices, the average fuel cost of transporting a passenger roundtrip on a Virgin America short-haul flight from San Francisco to Los Angeles is over $70. The same average cost on a Virgin America long-haul flight from San Francisco to New York is currently well over $300, which is $100 more than the cost in January 2008, and $130 more than the cost in July 2007.

"Even with one of the most fuel efficient fleets in the U.S., Virgin America is not immune to the unpredictability of the oil market. Consequently, we are diligently looking at all areas of our operation to help maintain our competitive fares and innovative, high-value service, while creating an internal structure that addresses fluctuating fuel costs," added Walke.

Launched in August 2007, Virgin America is the best financed new airline in U.S. history with more than $400 million of investor capital to date. Virgin America currently flies to seven cities with numerous daily flights from: San Francisco (SFO) to Los Angeles (LAX), SFO to New York (JFK), SFO to San Diego (SAN), SFO to Washington (IAD), SFO to Las Vegas (LAS), SFO to Seattle (SEA), LAX to JFK, LAX to IAD and LAX to SEA.

About Virgin America: Virgin America launched service in August 2007 from its base of operations at San Francisco International Airport's ultra-modern International Terminal. The airline's brand new fleet of Airbus A320-family aircraft offers guests interactive in-flight entertainment systems, power outlets for laptops or other electronic gear, and a host of other innovative features aimed at making flying good again. In Zagat's 2007 Global Airlines Survey of frequent fliers, the airline was ranked No. 1 among U.S. carriers for quality in First/Business Class and No. 2 for quality in Main Cabin. To learn more: www.virginamerica.com

The Virgin America logo is available at http://www.primenewswire.com/newsroom/prs/?pkgid=2371



            

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