Virgin Australia maintains FY26 guidance despite fuel costs increase
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The news: Virgin Australia has affirmed its second half underlying earnings before interest and tax, with underlying margin expected to be higher in FY26, despite recent fuel price volatility.
The context: The group said its balance sheet is expected to remain in a strong position as at 31 March 2026, noting underlying earnings before tax and interest are expected to be at the bottom end of the target range, with liquidity of $1.5 billion.
Virgin said it has hedged 92% for Brent crude oil and 71% for refining margins for the remainder of the second half of FY26. This would result in approximately $30 million to $40 million increase in fuel costs.
The company said the revenue per available seat kilometre (RASK) growth is forecasted to be around 5% in the second half and 6% in the fourth quarter.
For the first half of FY27, the group has hedged 93% for Brent crude and 15% for refining margins.
The source: ASX
