Virgin America Reports 2009 Second Quarter Financial Results

Start-up Domestic Airline Reports Year-Over-Year Growth, Versus Industry
Declines

SAN FRANCISCO, Aug. 27 /PRNewswire/ -- Virgin America, the award-winning
start-up airline, today reported its financial results for the second quarter
of 2009. Despite double-digit industry revenue decreases, the new carrier
reported significantly improved financial results and unit costs,
record-setting load factors and steady year-over-year growth in stage
length-adjusted guest unit revenue.

(Logo: http://www.newscom.com/cgi-bin/prnh/20090123/VIRGINAMERICALOGO)

"Given double digit year-over-year industry revenue declines and a 48 percent
increase in our capacity, we're particularly pleased to report stage-length
adjusted unit revenue growth and record-setting load factors in the second
quarter," said Virgin America President and CEO David Cush. "As we continue
to grow to new destinations in 2009 and beyond, our business model is right on
track. We're confident that our low fares, award-winning service and
high-tech amenities continue to provide an unrivalled value proposition at a
time when consumers are more discerning than ever."

Second Quarter Reporting Highlights:
-- Operating results: The airline reported an $11.4 million operating
loss
on revenues of $135.9 million - an 81.6 percent improvement
year-over-year.
-- Growing load factors: The airline reported an 85.3 percent overall
load
factor in 2Q09 - an 8 point improvement over 2Q08, despite a 42.9
percent increase in scheduled service capacity. Traffic increased by
57
percent year-over-year. The airline reported the highest loads in its
history, with an 85.1 percent load factor in April; 84.1 percent load
factor in May; and 86.6 percent load factor in June.
-- Significant top line progress: Revenue in 2Q09 was up by 46.9 percent
versus 2Q08. Virgin America's stage-length adjusted guest unit
revenue was up 2.7 percent versus 2Q08.
-- Exceptional cost control: Unit costs (CASM) dropped by 35.6 percent
while non-fuel CASM dropped by 20.9 percent, as the airline was able
to
increase capacity at a very low marginal cost.

-- Cash: The airline ended 2Q09 with $28 million in unrestricted cash
and
$54 million in total liquidity, with full funding for its operation
through its projected profitability date.

Q209 Q208 Percent change
---- ---- --------------

Revenues (000) $135,925 $92,546 46.9
------------- -------- ------- ----
Operating Expenses (000) 147,341 154,655 (4.7)
----------------------- ------- ------- ----
Operating Income (Loss)
(000) (11,415) (62,110) (81.6)
----------------------- ------- ------- -----
Net Income (Loss) $(15,776) $(64,361) (75.5)
---------------- -------- -------- -----
Total ASMs (000) 1,701,540 1,150,649 47.9
--------------- --------- --------- ----
Load Factor 85.3% 77.6% 7.7 pts
----------- ---- ---- ----
Operating Margin % (8.4%) (67.1%) 58.7 pts
----------------- ---- ---- ----
Total RASM 7.99 cents 8.04 cents (0.6)
---------- ---- ---- ----
Operating CASM 8.66 cents 13.44 cents (35.6)
-------------- ---- ----- -----
Ex-Fuel CASM 6.47 cents 8.18 cents (20.9)
------------ ---- ---- -----
Average Stage Length 1,397 1,244 12.3
-------------------- ----- ----- ----

"Given the overall industry revenue environment and our record growth, we're
very pleased with our unit cost improvements and steady progress to date on
our bottom line," added Cush.

In the second quarter, Virgin America launched new service to Orange County
(SNA) and added additional flights to its popular Boston (BOS) to San
Francisco (SFO) route. In May, Virgin America became the first and only
airline to offer WiFi on every flight. Take rates for the Gogo In-Flight
Internet Service continue to climb with some flights and routes reporting up
to 20-25% of guests using the service. Virgin America is also the only
domestic airline to offer standard power outlets near every seat - so
travelers can stay connected longer.

In July, Virgin America captured the "Best Domestic Airline" title for the
second consecutive year in Travel + Leisure's World's Best Awards. In the
second quarter, the airline also unveiled an updated and expanded new menu,
for which it also won "Best Domestic Airline for Food" in the prestigious
Travel + Leisure Annual World's Best Awards readers' survey.

Operationally, Virgin America continues to excel, achieving an impressive 82.7
percent A-14 on-time performance for the second quarter. The carrier's
mishandled baggage rate was also industry-leading in the second quarter, with
an average of 1.14 bags per 1000 guests, versus the industry average of 3.85
bags per 1000 guests.

Although a privately held company, the airline is announcing these earnings
results in advance of the U.S. Department of Transportation's (DOT) quarterly
reports.

Virgin America flies to San Francisco, Los Angeles, New York, Washington D.C.,
Seattle, Las Vegas, San Diego, Boston, Orange County and as of Nov. 18, 2009 -
South Florida (Fort Lauderdale). The airline currently offers daily flights
from: SFO to LAX, SFO to JFK, SFO to SAN, SFO to IAD, SFO to LAS, LAX to JFK,
LAX to IAD, SFO to SEA, SEA to LAX, JFK to LAS, BOS to LAX, BOS to SFO and SFO
to SNA. Virgin America has flown close to five million guests since its
inaugural flights in August 2007 and now counts over 950,000 Elevate loyalty
program members.

EDITORS NOTE: Virgin America is a U.S.-controlled, owned and operated
airline. It is an entirely separate company from Virgin Atlantic. Sir
Richard Branson's Virgin Group is a minority share investor in Virgin America.

About Virgin America: Headquartered in California and launched in August
2007, Virgin America is one of the fastest growing start-up U.S. airlines of
all time and currently employs over 1500 people. Virgin America offers guests
attractive fares and a host of innovative features aimed at reinventing air
travel. The airline's base of operations is San Francisco International
Airport's modern International Terminal. The airline's new aircraft offer
interactive in-flight entertainment systems and power outlets near every seat
for electronic gear. Virgin America offers in-flight internet service on
every flight and hosts the largest in-flight entertainment library in the U.S.
skies via its touch-screen Red(TM) seatback system. In just two years flying,
the airline was named "Best Domestic Airline" in the Conde Nast Traveler 2008
Readers' Choice Awards and in Travel + Leisure's 2008 and 2009 World's Best
Awards. Elevate is Virgin America's first-of-its-kind loyalty program, which
offers guests the ability to redeem points for any unsold seat - on any Virgin
America flight, at any time. Elevate offers Web-based redemption with no
black-out dates. For more please visit: www.virginamerica.com

SOURCE Virgin America

Abby Lunardini of Virgin America, +1-650-533-7576,
abby.lunardini@virginamerica.com