UPDATE: Virgin America Shares Surge On Upbeat Results

Shares of

surged more than 6% in pre-market trading after the company reported stronger-than-expected results for the fourth quarter. The Burlingame, California-based company posted quarterly net earnings of $3.9 million, or $0.16 per share, compared to $14.2 million, or $4.57 per share, in the year-ago quarter. Excluding non-recurring items, the company's adjusted earnings came in at $1.16 per share. Its revenue climbed 3.4% to $372.2 million. However, analysts were expecting earnings of $0.80 per share on revenue of f $371 million. Load factor widened to 81.2% to $78.5%. Traffic rose 2.7%, while capacity slipped 0.3%. Fuel costs dropped 7% to $2.93 a gallon. Revenue per Available Seat Mile rose 3.7% to 12.23 cents in the quarter, while Cost per Available Seat Mile, excluding special items, gained 0.7% to 11.10 cents. Operating margin, excluding special items, rose 2.6 points to 9.2%. As of December 31, 2014, the company had unrestricted cash of $394.6 million. "2014 was a remarkable year for Virgin America on every front," said David Cush, Virgin America's President and Chief Executive Officer. "We achieved record profitability and significantly strengthened our balance sheet by going public in the second largest airline IPO in history. Both our existing and new investors have shown confidence in our low-cost, high-amenity business model – and we've continued to sweep the major travel awards for both operational excellence and our innovative service." For the first quarter, Virgin America expects capacity growth of 2% to 3% and PRASM to change between -1.0% and +1.0%. Virgin America shares jumped 6.66% to $36.50 in pre-market trading.