Virgin Atlantic IPO needs strong tailwind

  • 8/9/2021
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LONDON, Aug 9 (Reuters Breakingviews) - Richard Branson’s recent trip to edge of space appears to have gone to his head. The British tycoon now wants to list his loss-making Virgin Atlantic airline on the London Stock Exchange, Sky News reported on Saturday. Admittedly, the carrier has undergone a radical overhaul since its brush with death last year. Yet the uncertain future for air travel, especially for businesspeople crossing the Atlantic, will make for a bumpy ride. Even before last year’s 864 million pound net loss, Virgin Atlantic was struggling with financial altitude. It hadn’t turned a profit since 2016, unlike arch-rival British Airways. In 2019 its net debt was 5 times EBITDA, a metric that’s unlikely to have been helped by last year’s 1.2 billion pound rescue package . To cap it all, U.S. budget carrier JetBlue (JBLU.O) is launching a transatlantic service. An initial public offering would be the ultimate test of public market investors’ nerves. (By Ed Cropley) On Twitter http://twitter.com/breakingviews Capital Calls - More concise insights on global finance: Citi gets better end of Aussie bank sale read more Chinese fast-fashion icon gets sunlight treatment read more Meituan’s troubles won’t end after $1 bln fine read more HelloFresh delivers another stomach upset read more India waves tax white flag at opportune time read more

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