Pre-tax profits rocketed by 96.5 percent to #68.4-million in the 12 months to the end of February, compared with #34.8-million in its 2007-20008 financial year.

Group sales, including tour operator division Virgin Holidays, increased 8.4 percent to 2.579 billion pounds, the company said in a results statement.

Virgin was boosted by strong demand for premium travel and its "hedging" policy to bet against volatile oil prices. Airlines seek to protect themselves against oil price moves by taking defensive positions on futures markets.

"The strong results ... reflect an increase in the number of premium travellers choosing the airline, as well as prudent management decisions taken during the most volatile trading conditions in the airline's 25-year history - where oil prices peaked at $147 per barrel and subsequently dipped as low as $38," Virgin said in a statement.

The group added that it carried 5.8 million passengers in the past year despite a recession in home market Britain.

Virgin Atlantic, which is not listed on the stock market, is 51-percent owned by tycoon Richard Branson. Singapore Airlines owns the remaining 49 percent.

The group spent nearly #1-billion in fuel costs in 2008-2009. Jet fuel, or kerosene, is refined from crude oil.

"The last financial year has proven to be the most volatile yet in our 25-year history," said Branson.

"To increase profits against a backdrop of such a severe recession is an excellent achievement by all of our staff."

Virgin Atlantic, which celebrates its 25th birthday next month, has a fleet of 38 planes and 8500 staff.

On Friday, BA posted a pre-tax loss of #401-million for 2008-2009 and blamed high fuel costs and slumping demand.

Will mergers mean less competition?

"After BA's crash landing last week it comes as some surprise that Virgin Atlantic is flying high," said Mark Priest, senior trader at ETX Capital.

"A 96-percent increase in profits, partially driven by increases in premium passengers, seems to buck the trend of many.

"However, the markets won't be fooled - the last quarter has not been short of turbulence for Virgin Atlantic. Expect a bumpy ride over the summer."

British Airways, meanwhile, is in merger talks with Spanish rival Iberia and is also seeking a tie-up with American Airlines.

Last year, American Airlines, BA and Iberia signed an agreement to cooperate over flights between North America and Europe to help them overcome high fuel costs.

However, the move has drawn fierce opposition from Virgin Atlantic, which claims such a partnership would threaten the survival of rivals.

"The plans by BA and AA to effectively merge are not in the interests of consumers," Virgin added Tuesday.

"Both airlines overlap on some of the most popular airline routes in the world - to and from London Heathrow - and their proposals would mean less competition on key routes."