Virgin Australia reports 28% slide in 1H profit
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The news: Virgin Australia reported a 27.9% drop in first-half statutory net profit to $341.1 million, after the previous corresponding period benefited from the recognition of deferred tax assets.
The numbers: On an underlying basis, net profit after tax rose 20.7% year on year to $279 million. Revenue climbed 9% year on year to $3.32 billion, edging out average estimates of $3.28 billion, according to Visible Alpha data.
The context: Virgin Australia chief executive Dave Emerson said that while passenger demand “remains strong”, cost pressures are persisting across the industry, and growing above inflation in “several areas” of the aviation supply chain, including airport charges and aircraft maintenance.
“The broader aviation industry must remain vigilant on costs so aviation doesn’t become unaffordable for Australians,” he said.
The airline expects a 2-3% increase in domestic capacity in the second half of FY26, and 3% growth in the first quarter of FY27.
The source: ASX
