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Virgin America files plans for IPO

Published on NewsOK Modified: July 28, 2014 at 11:54 am •  Published: July 28, 2014
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NEW YORK (AP) — Virgin America's next destination is Wall Street.

The California-based airline filed on Monday for an initial public offering of shares.

Virgin America Inc., which operates out of Los Angeles and San Francisco, flies to 22 airports in the United States and Mexico and has a fleet of 53 planes. It is known for offering a variety of perks on its jets, including live TV, movies, leather seats and purple mood lighting.

But it's still a small player. Virgin America carried 6.3 million passengers last year, less than one percent of the total passengers that flew on U.S. airlines. And its fleet is a tiny fraction of what larger carriers have. For instance, United Airlines has more than 1,200 aircraft in its fleet. Virgin America was founded in 2004 but wasn't approved for flying until the summer of 2007.

The company has been unprofitable until last year, when it had earnings of $10.1 million. In recent years, the U.S. airline industry has posted record profits, while Virgin America has struggled. Since 2009 it has lost about $407.5 million. Revenue in 2013 rose 6.9 percent to $1.42 billion from $1.33 billion in 2012, according to the filling.

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