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Virgin expects $2.5bn revenue ahead of rejoining ASX

written by Adam Thorn | January 31, 2023

Virgin VH-YFW shot by Victor Pody
Virgin VH-YFW shot by Victor Pody

Virgin Australia has told staff it generated $2.5 billion in revenue during the first half of the financial year.

Chief executive Jayne Hrdlicka also said in a note that the business expects a profit margin of “roughly 5 per cent” ahead of a likely relisting on the ASX.

“This is the first time in many years that Virgin has made a profit,” Hrdlicka wrote. “The results reflect the progress we have made in rebuilding the financial resilience that is so important to Virgin Australia’s long-term success.”

Virgin also separately announced a corporate reshuffle that will see ex-Macquarie Bank chairman Peter Warne join its board of directors along with former Goldman Sachs executive Pippa Downes.

Earlier in January, the business released a statement claiming it would “seek advice” on a “potential future IPO” but added that no final decision had been made.


The group also insisted it would retain a “significant shareholding” if Virgin were to become a public company again.

Bain Capital partner Mike Murphy said, “In the coming months, we will consider how best to position Virgin Australia for continued growth and long-term prosperity.

“Prior to covid [sic], Virgin Australia had a proud history as a public company. While there is currently no set timetable, at some point in the future, if any IPO does happen, Bain Capital would welcome public market investors joining us as shareholders in what is a great Australian company.

“Bain Capital has made a long-term commitment to support Virgin Australia’s growth and sustainability. It is Bain Capital’s current intention to retain a significant shareholding in a future IPO of Virgin Australia.

“Bain Capital will ensure these preliminary deliberations are not a distraction for Virgin Australia management, who can remain 100% focused on their roles.”

In October, Virgin said it had returned to real profitability for the first time since its damaging ‘capacity wars’ battle with Qantas a decade ago.

It said it achieved its remarkable financial turnaround by removing $300 million worth of costs and re-contracting more than 450 corporate accounts.

It followed the airline reporting an underlying loss of $386.7 million in the last financial year as it grappled with lockdowns.

While it technically delivered a $3.7 billion after-tax profit for the year ending June 2021, that largely came off the back of the $4.4 billion in creditors’ claims that were extinguished by its administrators.

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