Virgin Atlantic recorded pre-tax profits of almost £35m in the 2007-08 financial year.

The airline, of which original founder Sir Richard Branson now owns 51%, saw its profits rocket from the previous year's £6m. Virgin flew just under 6m passengers last year, an increase of almost 8%.

Virgin is one of the few airlines that has managed to increase its profit margin in the last financial year. Spanish airline Iberia and Hong Kong's Cathay have reported losses, while British Airways (BA) and Air France-KLM have seen profits fall sharply.

The airline has benefited from BA's problems at Heathrow's Terminal 5. T5 was hit by severe disruption because of baggage-handling problems resulting in large queues, lost luggage and a raft of negative publicity.

Steve Ridgway, Virgin Atlantic's chief executive, believes it is possible to thrive in the current climate. "While the outlook remains pretty overcast for the aviation industry, the winners will be those airlines that focus on offering the best customer service," he said.

The airline has continued its impressive performance, beginning the current financial year with sales between April and June up 16% to £645m.

Much of the aviation industry is struggling due to the credit crunch and fuel prices increasing by as much as 20%.