iscover
Virgin Australia has seen double-digit growth in both earnings and underlying profit for the 2026 financial year.
Australia’s second largest airline group reported underlying EBIT of $753 million for FY26, up 13.4 per cent on 2025, with underlying net profit after tax (NPAT) of $404 million, an increase of 21.9 per cent; statutory NPAT was up a more modest 4.7 per cent to $501 million.
This content is available exclusively to Australian Aviation members.
A monthly membership is only $5.99 or save with our annual plans.
- Australian Aviation quarterly print & digital magazines
- Access to In Focus reports every month on our website
- Unlimited access to all Australian Aviation digital content
- Access to the Australian Aviation app
- Australian Aviation quarterly print & digital magazines
- Access to In Focus reports every month on our website
- Access to our Behind the Lens photo galleries and other exclusive content
- Daily news updates via our email bulletin
- Unlimited access to all Australian Aviation digital content
- Access to the Australian Aviation app
- Australian Aviation quarterly print & digital magazines
- Access to In Focus reports every month on our website
- Access to our Behind the Lens photo galleries and other exclusive content
- Daily news updates via our email bulletin
“The result was underpinned by more than $450 million in gross Transformation Program benefits during FY26,” the airline told the ASX.
“When combined with effective fuel hedging and benefits from newer, more fuel-efficient aircraft, this partly offset above-inflation cost increases, particularly in airport charges and labour.
“Operational performance strengthened during FY26. On-time performance increased 30 basis points to 77.1 per cent and was more than 80 per cent in the June quarter, while the completion rate increased 30 basis points to 98.7 per cent.
“Strategic Net Promoter Score increased three points to 30. Virgin Australia is currently Australia’s most trusted airline according to Roy Morgan and maintained a strong corporate reputation score.”
According to Virgin Australia CEO Dave Emerson, the results demonstrate that Virgin has “become a stronger and more resilient airline”.
“Our strategy is working. We have built a simpler, more focused business with a primarily domestic network, targeted short-haul international services and global connectivity through our airline partners,” he said.
“That strategy, together with the continued benefits of our Transformation Program, has strengthened the quality of our earnings and positioned us well for the future.
“We delivered strong earnings growth and further margin expansion despite significant inflationary pressure across the aviation supply chain and a more challenging operating environment, while continuing to invest in the long-term competitiveness of the business.”
Virgin Australia took delivery of 17 new aircraft during the 2026 financial year, including 13 737 MAX 8s and four Embraer E190-E2s. According to Emerson, it is expecting five more MAX 8s and two more E2s in the 2027 financial year, and expects strong demand with solid forward bookings.
“As Australia’s value carrier, we are well positioned to meet growing customer demand for value, particularly as cost-of-living pressures remain elevated. Travel demand remained strong, with customers continuing to prioritise travel,” he said.
“Our disciplined approach to capacity, our focus on the customer segments where we can win, and the continued delivery of our Transformation Program supported strong commercial and operational outcomes.
“We continued to improve the experience for our guests through a more reliable operation, digital innovation, product improvements and fleet renewal.”
Virgin relisted on the ASX last year after five years of rebuilding following its collapse into voluntary administration in 2020.
Want to see more stories from trusted news sources?
Make Australian Aviation a preferred news source on Google.
Click here to add Australian Aviation as a preferred news source.
