Virgin Atlantic chief: UK government should reverse course as pound slumps
Virgin Atlantic has urged the government to consider “reversing course” after the mini-budget, with the collapsing pound massively driving up costs for airlines.
The chief executive, Shai Weiss, said the economic situation was “hurting consumers” and the airline was deeply concerned, even though it believed its own bookings would hold up.
Weiss said the airline had converted its sterling holding into dollars several months ago, a “smart financial position” that was now worth a considerable amount of money and was protecting it from the currency shock. About 60% of its outgoings are in dollars, mainly aircraft purchases and jet fuel.
Weiss said the prime minister, Liz Truss, should take a “difficult decision” to boost the pound, after the slump from Friday’s tax cuts – to be financed by additional government borrowing – announced by the chancellor, Kwasi Kwarteng.
Speaking at a press conference in London, he said: “The weakness of the pound is hurting, not Virgin Atlantic, it’s hurting the economy and it’s hurting consumers because it’s actually fulfilling or fuelling the inflation vicious cycle that we’re in.
“The message to government is pretty clear in my mind. You need to take a more difficult decision to reverse the declining pound and ensure that this country is not left with unsustainable perceived weakness in international markets, which of course then impact interest rates, impact consumers, impact mortgage rates, impact the entire economy.
“We’re concerned of course like everyone else in this country with the economic environment in which we operate.”
Weiss said leaders should be humble enough to say: “If I did something that is not working, maybe I should reverse course.”
He added: “If this is the response to your
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