Virgin Atlantic, which has been hit hard by the COVID-19 pandemic, is expected to raise 160 million pounds ($222.75 million) in new funding, according to a spokeswoman for Richard Branson’s airline.
The spokeswoman said, “We continue to bolster our balance sheet in anticipation of the lifting of international travel restrictions in the second quarter of 2021.” She said, “This new £160 million funding offers additional stability towards a slower sales recovery in 2021.”
The new round of funding comes after the airline completed the sale and leaseback of two Boeing 787s in January as part of a strategy to improve its balance sheet.
The contract with Griffin Global Asset Management to raise just over $230 million from the two planes was supposed to help Virgin Atlantic pay off a loan it took out as part of its bailout last year.
According to Sky News, Branson’s Virgin Group will provide around 100 million pounds, with the remaining 60 million pounds including deferrals.
In November 2020, the airlines announced that it has received a 1.2 billion pound rescue package, to help the airlines survive the market even if the travel situation gets worse.
Last year, Virgin cut costs by 335 million pounds, according to CEO Shai Weiss, who spoke at a conference for the airline industry in November. During the pandemic, it also reported 4,650 job cuts, halving its employees and reducing its fleet.
