Staying Agile in an Unpredictable Market
Corneel Koster, CEO, Virgin Atlantic
Moderated by Gordon Smith, Skift
THE VERDICT
Reconfiguring a fleet to carry nearly as many premium seats as economy is a decade-long bet on premium demand. Koster said it’s “not a bet, it’s an investment.” He called premium demand “insatiable” and said the airline was “underweight” in premium cabin capacity for years. The question for every travel company shifting resources toward premium: is the demand truly structural?
PATHS FORWARD
- Reconfigure capacity around margin opportunity. Koster said the refurbished 787 Dreamliners will drop economy from 192 seats to 127 while expanding premium. He said UK-to-US demand is up 7% year over year, corporate demand up 11%, and cargo up 36%. Many of the world’s largest airlines are re-allocating capacity in a similar fashion.
- Protect human moments that build loyalty. Koster said Virgin Atlantic’s customer-facing concierge has “a proper Virgin Atlantic British tone of voice” and handles routine queries faster than a human agent, but the airline will not “cut humans out of the loop where it matters most to our customers.”
- Use partnerships to punch above your weight without losing identity. Koster said the Delta relationship has made Virgin Atlantic “probably more Virgin than ever.” He said the partnership gives access to Delta’s network and scale while Virgin Atlantic keeps its challenger brand, design, and culture. Any smaller brand considering a strategic partnership should ask whether the relationship amplifies identity or dilutes it.
WHAT TO WATCH
- Koster said that as AI and digital experiences become more powerful, “humans will crave for real experiences” — travel to other countries, connection with other cultures, reconnecting with nature. He said AI agents “cannot replace flying people from A to B.” The thesis that digital saturation drives physical demand is a prime assumption underneath premium investments across travel.
- Koster said the UK mandate for sustainable aviation fuel is rising, but the fuel “is just not available.” He warned that without sufficient supply, “the customer basically has to pay more without getting environmental benefits.” SAF mandates without SAF supply is a cost-without-value problem every airline will face on a short timeline.
Access all the Skift Takeaways from this event, as well as full session videos, presentation documents, and more editorial coverage at our Skift Global Forum attendees hub.
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