Key facts
- Virgin Australia reported a 21.9% increase in underlying net profit after tax to A$404 million for the fiscal year ended June 30.
- The airline expects to reduce domestic capacity by 3% in the first half of the fiscal year.
- Virgin Australia forecasts revenue per available seat kilometre (RASK) growth of 6% to 8% for the six months ending December 2026.
- The company declared its first dividend since relisting in 2025, a fully franked payout of 7.6 Australian cents per share.
Virgin Australia announced better-than-expected full-year earnings, posting an underlying net profit after tax of A$404 million for the 12 months ended June 30, a 21.9% increase from the previous year. This result surpassed Visible Alpha's consensus estimate of A$383.4 million, driven by robust travel demand, the airline's efficiency-focused transformation program, and effective fuel hedging.
The airline also declared its first dividend since relisting in 2025, a fully franked payout of 7.6 Australian cents per share. Despite inflationary pressures in the aviation supply chain, Virgin Australia's CEO Dave Emerson highlighted strong earnings growth and margin expansion.
Looking ahead, Virgin Australia anticipates trimming domestic capacity by 3% in the first half of the fiscal year, a move in line with competitor Qantas Airways, to support revenue growth. The airline forecasts revenue per available seat kilometre (RASK) to increase between 6% and 8% in the six months ending December 2026, exceeding the Visible Alpha consensus estimate of approximately 5.15%. This projection underscores resilient travel demand and disciplined capacity management. Qantas previously reported its total revenue per available seat kilometre would rise by 8% to 10% in the same period.