Virgin Express in the black

SIR Richard Branson's formerly spectacular loss-making airline Virgin Express turned a profit last year and announced plans to expand with the opening of a second Continental hub to add to its Brussels base.

The European short-haul operator, 59%-owned by Branson, reported a e880,000 (£540,000) pre-tax profit for 2001 against a e65.3m loss the previous year. Many feared for the future of the carrier last year when it announced the closure of its Irish operations and a cull of its fleet from 23 to 13 aircraft.

Chairman David Hoare said the results reflected the success of his strategy to turn Virgin Express into a low-fares carrier. In the year, its planes were on average flying nearly 82% full against 73% in 2000.

Having cut back initially to just eight routes, it has expanded again to 15 destinations. The airline expects to announce a seasonal first-quarter loss but to return to profit in the current three months.