Virgin Australia reaffirms FY2026 outlook

Virgin Australia reaffirmed (29-Aug-2025) the outlook for FY2026 provided in the prospectus for its initial public offering. Highlights include:

• Demand for air travel to grow broadly in line with GDP growth;
• Fleet and ASK growth are expected to align with demand growth, including the addition of 12 new Boeing 737 MAX 8 aircraft and four new Embraer E190-E2 aircraft scheduled for delivery by Jun-2026. The carrier noted that the majority of the new aircraft will be used to replace existing aircraft;
• Ongoing impact of the transformation programme to support RASK growth, which is expected to reach 3% to 5% in H1FY2026 compared with H1FY2025;
• Fuel costs managed through the hedging programme, which is in place against adverse movements in fuel prices until Dec-2025;
• Growth in labour and staff related unit costs compared to FY2025 expected to be modestly above inflation;
• Airport and maintenance costs expected to grow at above inflation.

Virgin Australia Group's underlying EBIT is expected to continue to improve, delivering a gross benefit of approximately AUD400 million (USD261.2 million) in FY2026. The company also projected domestic capacity increases of 5% year-on-year in Q1FY2026, 3% in Q2FY2026 and 4% for H1FY2026. [more - original PR]