Key points
- Underlying EBIT up 13.4% to $753m
- Underlying EBIT margin expanded by 60bps to 12.0%
- Fully franked dividend of 7.6 cents per share declared
- Strong operational performance with on-time performance at 77.1%
- Strategic Net Promoter Score increased to 30
Full summary
Virgin Australia Holdings Ltd announced its FY26 results, highlighting strong earnings growth and margin expansion. The company reported underlying EBIT of $753 million, up 13.4% from FY25, supported by strong demand, disciplined capacity management, and the Transformation Program. The underlying EBIT margin expanded by 60 basis points to 12.0%, reflecting improved earnings quality. Underlying Net Profit After Tax (NPAT) increased 21.9% to $404 million, with diluted underlying EPS rising 12.9% to 50.9 cents. The company declared a fully franked dividend of 7.6 cents per share, its first since re-listing. Operational performance improved with on-time performance at 77.1% and a Strategic Net Promoter Score of 30. The balance sheet remained conservative with net debt of $1.2 billion and leverage of 0.9x underlying EBITDA.
Guidance
FY27 underlying EBIT expected to be broadly in line with FY26
Outlook
Virgin Australia expects demand and forward bookings to remain strong. The company plans to manage capacity with discipline and expects RASK to grow 6-8% in 1HFY27. Fuel costs are expected to be around $700 million for 1HFY27. Investment in Velocity is expected to deliver low double-digit EBIT growth from FY28 to FY29.