Australia’s second-largest airline has lifted its annual earnings despite headwinds from the US-Iran war, which disrupted passenger travel plans and increased jet fuel costs.
Virgin Australia, which re-listed on the stock exchange in June 2025, on Friday reported its first full-year profit as a full company member of the local bourse.
While its first half 2025/26 performance was strong, conditions were more challenging in the second half due to cost pressures and the US-Iran war, which made fuel markets very volatile, chair Peter Warne and chief executive Dave Emerson said.
“Our fuel hedging strategy supported our performance during financial year 2026, and we continue to monitor market conditions every day,” they said in a joint statement.
Virgin made a bottom-line net profit of $501.2 million for 2025/26, up 4.7 per cent from the previous financial year.
Its underlying earnings – before interest and tax – came to $753.2 million, a jump of 13.4 per cent for the 12 months ended June 30, on an underlying revenue and income lift of 8.1 per cent to $6.3 billion.
Virgin made strides in reliability during the year, with on-time performance at 77.1 per cent, an improvement of 30 basis points from the previous year.
“Whether it’s a family holiday, an important business meeting, or simply getting home, our guests expect their flight to operate as planned,” Mr Warne and Mr Emerson said.
“So we are proud to maintain the lowest cancellation rate of the major airlines this year.”
The airline, which services 56 domestic and 16 short-haul international routes, carried 21.3 million passengers in the year, up 3.2 per cent.
Looking ahead, the company leaders said they were optimistic about the future, although cost pressures on the airline would continue.
Virgin declared a dividend of 7.6 cents – its first payout to shareholders since relisting.
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