Virgin Australia logs $753M FY26 underlying EBIT
Full story: https://grafa.com/en/news/australia/virgin-australia-logs-753m-fy26-underlying-ebit
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Virgin Australia reported an underlying EBIT of $753 million for FY26, up 13.4% on the prior year.
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Following the announcement, Virgin Australia shares rose 6.04% to close at $2.81.
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Earnings growth was driven by $450 million in gross benefits from the company's transformation programme, fleet efficiency, and disciplined capacity management.
Virgin Australia (ASX:VGN) delivered an underlying EBIT of $753 million for the 2026 financial year, representing a 13.4% increase on FY25.
The earnings growth was accompanied by a 60 basis point expansion in underlying EBIT margin to 12.0%, up from 11.4% in the previous financial year.
The company's board declared a fully franked dividend of 7.6 cents per ordinary share, marking its first dividend payment since re-listing in 2025.
Underlying net profit after tax rose 21.9% in FY25 to $404 million, while gross transformation programme benefits exceeded $450 million for the year.
Virgin Australia CEO and Managing Director Dave Emerson said, "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."
The company stated that the cost benefits from newer aircraft and effective fuel hedging helped offset above-inflation increases in airport charges and labour.
The board has declared a dividend of 7.6 cents per ordinary share fully franked.
Following the announcement, the Virgin Australia share price was up at $2.81.
For FY27, underlying EBIT for H1 FY27 is expected to be broadly in line with H1 FY26. Virgin Australia expects to purchase five Boeing 737-8 (MAX) aircraft and two Embraer E190-E2 aircraft in FY27.
Virgin Australia relisted on the ASX in June 2025 following a period of private ownership and operational restructuring.
The airline operates domestic and short-haul international flights across Australia, short-haul international destinations, and regional routes.
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