Higher U.S. travel helps Virgin America fly past estimates

The airline's shares were up 3.4 percent at $30.80 in light premarket trading on Thursday.

Virgin America, the first U.S. airline to go public since Spirit Airlines Inc's debut in 2011, said it expects capacity to increase 2-3 percent in the third quarter.

Virgin America's U.S.-focused operations have sheltered the company from a strong dollar, which has crimped revenues at rivals that fly internationally.

Low oil prices have also reduced fuel costs for all U.S. airlines. Virgin America said fuel expenses fell to $2.18 per gallon from $3.11 in the second quarter ended June 30.

The airline, which leases all 53 of its Airbus single-aisle aircraft, said it expects to take delivery of five more planes between January and June 2016.

The company's net income rose to $65 million in the second quarter from $37 million a year earlier.

However, earnings per share fell to $1.47 from $11.92 due to a higher number of shares outstanding in the latest quarter.

Excluding items, Virgin America earned $1.46 per share. Analysts on average had expected earnings of $1.25, according to Thomson Reuters I/B/E/S.

Total operating revenue rose 0.5 percent to $400.9 million.

Up to Wednesday's close of $29.79 on the Nasdaq, Virgin America's shares had risen 30 percent since their debut on Nov. 14.

(Reporting by Sagarika Jaisinghani in Bengaluru; Editing by Maju Samuel)

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