Highlights

  • Virgin Australia (ASX:VGN) reported FY26 underlying EBIT of $753 million, up 13.4% on FY25.
  • Underlying NPAT increased 21.9% to $404 million, while statutory NPAT rose to $501 million.
  • The company declared a fully franked FY26 Dividend of 7.6 cents per ordinary share.
  • Operating performance improved with on-time performance rising to 77.1% and completion rate reaching 98.7%.
  • Virgin Australia traded at AUD 2.82, up 0.53% during the morning session on 28 August 2026.

Virgin Australia Holdings Limited (ASX:VGN) has reported its FY26 results, highlighting higher earnings, Margin expansion and progress from its Transformation Program. The company recorded underlying EBIT growth during the year and declared its first dividend since relisting in 2025.

During the morning session on 28 August 2026, Virgin Australia (ASX:VGN) was trading at AUD 2.82, up 0.53%. The stock remains down 19.05% over the past year.

Financial Results

Virgin Australia reported underlying EBIT of $753 million for FY26, representing a 13.4% increase compared with FY25. The company said the result was supported by customer demand, disciplined capacity management, fuel hedging and continued benefits from its Transformation Program.

The underlying EBIT margin expanded by 60 basis points to 12.0%, reflecting improvement in Earnings performance during the period.

Underlying net profit after tax (NPAT) increased 21.9% to $404 million, while diluted underlying Earnings Per Share rose 12.9% to 50.9 cents. Statutory NPAT increased 4.7% to $501 million.

The company attributed the result partly to more than $450 million in gross Transformation Program benefits delivered during FY26. These benefits, together with fuel hedging and newer aircraft, helped offset higher costs including airport charges and labour expenses.

Dividend Return

Virgin Australia declared a fully franked FY26 dividend of 7.6 cents per ordinary share, marking the company’s first dividend since relisting in 2025.

The company said the dividend declaration reflected its financial position while maintaining its approach to Investment and Capital allocation.

Operational Performance

Virgin Australia reported improvements across key operating measures during FY26. On-time performance increased 30 basis points to 77.1%, while completion rate improved 30 basis points to 98.7%. Strategic Net Promoter Score increased by three points to 30.

The airline segment delivered underlying EBIT of $616 million, up 15.2% on FY25. Underlying Revenue increased 8.0% to $6.0 billion, while the underlying EBIT margin expanded by 60 basis points to 10.2%.

The company carried 21.3 million passengers during FY26, representing a 3.2% increase, while load Factor remained stable at 84.9%. Total capacity increased 1.8%, with domestic capacity growth partly offset by lower short-haul international capacity.

Virgin Australia’s Velocity loyalty Business also recorded growth during the year. Velocity delivered underlying EBIT of $143 million, up 12.3% on FY25, while underlying revenue increased 8.1% to $487 million. External billings grew 12.4%, active members increased 9%, and more than 800,000 new members joined during FY26.

Balance Sheet

Virgin Australia maintained a conservative Balance Sheet during FY26, with net Debt of $1.2 billion, including capitalised Lease liabilities. Leverage stood at 0.9x underlying EBITDA at 30 June 2026, below the company’s target range of 1–2x. Available Liquidity was $1.6 billion.

The company generated Operating Cash Flow of $1.3 billion during FY26, including $159 million in income tax payments. Capital Expenditure was $884 million, consistent with guidance.

Fleet Investment

Virgin Australia continued fleet renewal initiatives during FY26, with 17 new aircraft delivered during the year. This reduced the average fleet age to 11.5 years and supported improvements in fuel efficiency, emissions reduction, reliability and customer experience.

At 30 June 2026, Virgin Australia operated 108 narrowbody aircraft, excluding three Airbus A320 aircraft held for return, along with eight domestic wet-lease lines.

The company expects to purchase five Boeing 737-8 (MAX) aircraft and two Embraer E190-E2 aircraft in FY27, increasing the owned aircraft mix to approximately 39%.

Management Outlook

Virgin Australia CEO and Managing Director Dave Emerson said the FY26 results reflected progress from the company’s strategy, including a simpler business model focused on domestic operations, targeted short-haul international services and global connectivity through airline partners.

Looking ahead, the company remains focused on managing costs, continuing transformation initiatives and investing in areas that support long-term earnings growth.

Investor Takeaway

Virgin Australia’s FY26 update highlights higher earnings, improved operating metrics and the return of dividend payments following its relisting. Investors may continue watching passenger demand, cost management, fleet renewal, Velocity performance and the company’s ongoing transformation initiatives as it progresses through FY27.