Revenues for Virgin Atlantic slipped by 8.6% in 2009/10, the airline revealed today.

In its annual results, Virgin said revenues for its full year performance fell to £2.3bn, down 8.6% compared with the previous year. It also suffered a group pre-tax operating loss of £132 million.

But Virgin said total airline revenue for the company in the first quarter of this financial year rose 10% compared with last year, reaching £513 million.

The period covers March to May, a time when much of the airline industry was suffering from the ash crisis, which hit the skies in April.

Despite the ash problems, the airline revealed its passenger load factor had increased by 5% to 82%. Its business class market share has also risen by 5%, with 15% additional upper class passengers.

Commenting on the results, chief executive Steve Ridgway said: “The start of the year has been encouraging despite difficult trading conditions. Demand is picking up across the majority of our routes and forward bookings for the summer have been very positive. From all of the major operational challenges that we have faced this year – including snow and volcanic ash – the response from everyone at Virgin Atlantic has been outstanding.”

The airline has estimated that the customer compensation and operational cost following the ash cloud will total £30 million.

"We have just faced one of the toughest years in our history,” Ridgway added. “However, the early action that we took to deal with the losses from the worst recession on record, not only enabled us to protect the business; it provided us with a strong platform for growth this year. We have just delivered a new brand identity, are hiring hundreds of new staff and are looking forward to the new aircraft deliveries early next spring."

The airline is currently recruiting 300 staff of which 150 roles will be cabin crew, with the remainder of jobs created for its new customer call centre due open in Swansea this autumn.

The new cabin crew positions include support for its new route from Manchester to Las Vegas.