Virgin Australia provides underlying EBIT guidance for H1FY2027

Virgin Australia reported (28-Aug-2026) underlying EBIT for H1FY2027 is expected to be "broadly in line with H1FY2026" based on "the forward fuel curve" and "demand and forward bookings" remaining strong as consumers continued to prioritise travel. The carrier reported an underlying EBIT of AUD490 million (USD352.6 million) in H1FY2026. Key assumptions for H1FY2027 include:

• Capacity will continue to be managed "with discipline", with domestic capacity to decline by 3%;
• RASK is expected to grow between 6% and 8% reflecting "strong demand, transformation and disciplined capacity management";
• Benefits from the carrier's Transformation Programme and lower maintenance costs are expected to partly offset headwinds in airports and labour costs, resulting in CASK (excluding fuel) growth being less than RASK growth;
• Fuel is expected cost of approximately AUD700 million (USD503.7 million) based on the forward curve and 3.2 million barrels of oil consumed with hedging for the remainder of the period of 96% (brent) and 20% (refining margins);
• Velocity is expected to achieve continued strong underlying momentum in active member growth and external billings, offset by one-off impact of Reserve Bank of Australia interchange fees and ramp up of investment in three year Velocity transformation programme, resulting in FY2027 underlying EBIT being "broadly in line" with FY2026. This investment is targeted to deliver low double digit underlying EBIT growth for FY2028 and FY2029;
• Capex is expected to be approximately AUD900 million (USD647.6 million) to AUD1 billion (USD719.6 million) FY2027, including the purchase of five Boeing 737 MAX 8 aircraft and two Embraer E190-E2 aircraft;
• Leverage expected to be towards the low end of the target range of one to two times net debt/underlying EBITDA;
• Significant Items excluded from FY2027 underlying results are expected to be approximately AUD40 million (USD28.8 million), which includes transformation-related restructuring and IT costs of approximately AUD20 million (USD14.4 million), IPO-related share-based payments of approximately AUD20 million and any foreign exchange movements in aircraft lease liabilities.

Virgin CEO and MD Dave Emerson stated: "Looking ahead, we remain focused on providing value and choice to Australians to meet their travel needs. As an industry, we all have a role to play in managing costs so aviation doesn't become unaffordable for Australians". He continued: "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". [more - original PR]