Virgin Australia has posted a 22 per cent jump in underlying net profit to $404 million for the 2025/26 financial year.
The airline claims the increase is down to strong travel demand, disciplined capacity management, the continued benefits of its Transformation Program and effective fuel hedging which helped it overcome rising costs.
The result was above market expectations and marked another strong year for Australia’s second largest airline.
“Our FY26 results demonstrate that Virgin Australia has become a stronger and more resilient airline,” said Dave Emerson, Virgin Australia Chief Executive Officer and Managing Director.
“Our strategy is working. We have built a simpler, more focused business with a primarily domestic network, targeted short-haul international services and global connectivity through our airline partners.
“That strategy, together with the continued benefits of our Transformation Program, has strengthened the quality of our earnings and positioned us well for the future.”
Underlying earnings before interest and tax rose 13.4 per cent to $753 million, while revenue climbed 8.1 per cent to $6.278 billion.
Virgin Australia also reported a statutory net profit after tax of $501.2 million, up 4.7 per cent on the previous financial year.
“We delivered strong earnings growth and further margin expansion despite significant inflationary pressure across the aviation supply chain and a more challenging operating environment, while continuing to invest in the long-term competitiveness of the business,” added Mr Emerson.
The airline’s underlying EBIT margin increased to 12 per cent, while its core Airlines division recorded a 15.2 per cent rise in underlying EBIT to $616 million.
Virgin carried 21.3 million passengers during the year, up 3.2 per cent, while also continuing its fleet renewal program.
The airline took delivery of 17 new aircraft during FY26, including 13 Boeing 737 8 MAX aircraft and four Embraer E190 E2s.
Its Velocity frequent flyer business also continued to grow, with underlying EBIT rising 12.3 per cent to $143 million and more than 800,000 new members joining during the year.
In a further boost for shareholders, Virgin Australia declared a fully franked dividend of 7.6 cents per share, its first dividend since returning to the ASX in 2025.
Looking ahead, the airline is taking a cautious approach to growth, forecasting domestic capacity will fall by around 3 percent in the first half of FY27 as it focuses on protecting yields.
“We remain focused on providing value and choice to Australians to meet their travel needs,” said Mr Emerson.
“As an industry, we all have a role to play in managing costs so aviation doesn’t become unaffordable for Australians.
“The cumulative impact of rising costs across many parts of the aviation supply chain, particularly airport charges, remains a concern and reinforces the importance of continued financial discipline and transformation.”
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