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Virgin Australia has touted high demand and progress on its transformation program at its first annual general meeting since its return to the ASX earlier this year.
Speaking at the meeting on Friday, CEO Dave Emerson said the airline had seen a successful 2025 financial year, with 20.7 million customers flown and a statutory net profit after tax of $479 million, and that trading for 2026 to date is in line with its expectations.
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“We continue to experience strong demand and expect to grow domestic capacity in the first half of the 2026 financial year by four per cent compared to the prior corresponding period, consistent with our guidance from August,” said Emerson.
“We also provided domestic capacity guidance for the second half of the financial year, which we expect to increase by two per cent compared to the prior corresponding period.
“This equates to three per cent capacity growth for the financial year, which supports expected market demand growth.
“Revenue per Available Seat Kilometre or RASK for the first half of the 2026 financial year is expected to grow by three to five per cent compared to the prior corresponding period.”
In a market update posted to the ASX, Virgin said total cost increases are “broadly in line with expectations”.
“It is expected that moderate benefits from lower fuel costs in FY26 will be offset by above-the-line investment to support the ongoing Transformation Program initiatives that are targeted to provide benefits in future years,” the airline said.
“Net capital expenditure in FY26 is now expected to be $800 million compared to previous guidance of $900 million, with the rescheduling of some maintenance events relating to the existing fleet to FY27 and an improved pre-delivery payment profile reflecting Boeing fleet delivery changes.”
As part of its fleet renewal program, Virgin refurbished 47 of its 737-800s during the year and added five more aircraft, bringing its total fleet to 104.
“Virgin Australia is progressing with its fleet growth and renewal program which includes new 737 MAX-8 and E190-E2 aircraft. The delivery timeline of new aircraft in FY26 remains in line with prior guidance,” the airline said.
“To date it has received six of the 13 new Boeing 737-8 (Max) aircraft and one of the four new Embraer E190-E2 aircraft expected to be delivered in FY26. It is noted that the majority of new aircraft will be used to replace existing aircraft.”
Additionally, according to chair Peter Warne, the airline’s transformation program delivered more than $450 million in gross benefits during the year.
“Together with savings in fuel costs, these benefits offset inflationary headwinds and contributed to further expansion in our EBIT Margin, with underlying EBIT Margin increasing by 1.7 percentage points to 11.4 per cent,” he said.
“The Transformation Program remains ongoing, and we expect to realise significant additional benefits in coming years.”
Virgin Australia relisted on the ASX in June after five years under Bain Capital’s ownership.
