Virgin Australia profit slips 12% on return to ASX
Make us a preferred source
Make us a preferred source on Google
The news: Virgin Australia has posted a full-year statutory net profit after tax of $479 million, 12.3% lower than the $545.4 million reported in FY24 as the company reported its first full-year result since returning to the ASX in June.
The airliner attributed part of the full year loss to transaction costs associated with the initial public offering and Qatar Airways' acquisition of a 25% equity stake in Virgin.
The numbers: Revenue and income came in at $5.81 million, 3% higher than the $5.63 billion generated in FY24. Pro forma underlying EBIT increased by 29.6% year on year to $650 million with the pro forma EBIT margin lifting 1.8 points to 11.2%.
The airlines segment saw revenue per available seat kilometre growth of 4% in FY25. The airline carried 20.7 million passengers in FY25 compared to 19.2 million in the previous year.
The Velocity segment, Virgin's frequent flyer program, saw underlying EBIT lift 10.5% year on year to $127 million.
The Virgin Australia board has decided not to declare a final dividend for FY25.
For the first half of FY26, Virgin is expecting domestic capacity to increase by 4%. A 5% lift is expected in the first quarter followed by a 3% lift in the second quarter.
Revenue per available seat kilometre is expected to increase by 3% and 5% in the first half of FY26 compared to the previous corresponding period.
The context: Virgin Australia received one new Boeing 737-8 (Max) in FY25, after receiving six in FY24. It expects to receive a further 12 in FY26.
The airline group is also expecting Virgin Australia Regional Airlines to receive four Embraer E190-E2 aircraft in FY26 to facilitate the progressive phase out of its Fokker F100 fleet. The regional airline's Airbus A320s are being replaced by Boeing 737 aircraft.
By 30 June 2026, Virgin expects its fleet to have 107 aircraft, in addition to eight wet lease lines.
