Virgin Atlantic cashing in on flight from BA

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The airline founded by Sir Richard Branson is set to report strong first-quarter results next week despite soaring fuel costs, the slowing economy, and the crisis facing the airline industry.

BA chief executive Willie Walsh described it as "the worst trading environment the industry has ever faced" but Virgin was more bullish and blamed BA's woes at Heathrow.

It said demand to fly Virgin is up sharply at a time when BA is shedding 25,000 passengers a week.

The national flag carrier this month reported an 88% fall in profits for the three months to the end of June.

Sir Richard has turned his fire on plans of BA and rival American Airlines to collaborate more closely on transatlantic routes, claiming it will create a "monster monopoly".