Company Reports

Virgin's new market position is a clear improvement, materially reducing complexity, lowering capital intensity, and improving margins. It has repositioned toward a midmarket value proposition, placing fares between Qantas' full-service offering and its budget subsidiary Jetstar. At this price point, Virgin is targeting premium leisure travelers, small to medium-sized businesses, and value-conscious corporates. We expect it to maintain roughly one-third of Australia's domestic aviation market in a two-player market with Qantas.

Virgin Australia's fiscal 2026 underlying EBIT rose 13% to AUD 753 million on 8% underlying revenue growth. Demand was strong, and prices were high amid elevated fuel costs. But Virgin was well hedged, driving a 60-basis-point increase in EBIT margin to about 12%.

Virgin Australia provided a trading update, given the Iran conflict, with jet fuel prices more than doubling since February. Fuel cost increases have been largely mitigated through hedging of both Brent crude and the jet fuel spread, alongside higher airfares. Shares rose 8%.

Virgin's new market position is a clear improvement, materially reducing complexity, lowering capital intensity, and improving margins. It has repositioned toward a midmarket value proposition, placing fares between Qantas' full-service offering and its budget subsidiary Jetstar. At this price point, Virgin is targeting premium leisure travelers, small to medium-sized businesses, and value-conscious corporates. We expect it to maintain roughly one-third of Australia's domestic aviation market in a two-player market with Qantas.

The global average jet fuel price for the week ending March 13, 2026, was about USD 175 per barrel, per the IATA-Platts Jet Fuel Price Index. This was 76% higher than two weeks prior, before the Iran war began. Brent crude is now well over USD 100 per barrel, up roughly 50% since February.

Virgin's new market position is a clear improvement, materially reducing complexity, lowering capital intensity, and improving margins. It has repositioned toward a midmarket value proposition, placing fares between Qantas' full-service offering and its budget subsidiary Jetstar. At this price point, Virgin is targeting premium leisure travelers, small to medium-sized businesses, and value-conscious corporates. We expect it to maintain roughly one-third of Australia's domestic aviation market in a two-player market with Qantas.

Virgin's new market position is a clear improvement, materially reducing complexity, lowering capital intensity, and improving margins. It has repositioned toward a midmarket value proposition, placing fares between Qantas' full-service offering and its budget subsidiary Jetstar. At this price point, Virgin is targeting premium leisure travelers, small to medium-sized businesses, and value-conscious corporates. We expect it to maintain roughly one-third of Australia's domestic aviation market in a two-player market with Qantas.

Virgin Australia's first-half fiscal 2026 underlying EBIT rose 12% to AUD 490 million, on a 9% increase in sales and offset by an 8% increase in costs. Yield growth is especially strong at 6%, supported by strong demand, fare mix, and ancillary revenue growth.

Virgin's new market position is a clear improvement, materially reducing complexity, lowering capital intensity, and improving margins. It has repositioned toward a midmarket value proposition, placing fares between Qantas' full-service offering and its budget subsidiary Jetstar. At this price point, Virgin is targeting premium leisure travelers, small to medium-sized businesses, and value-conscious corporates. We expect it to maintain roughly one-third of Australia's domestic aviation market in a two-player market with Qantas.

Virgin Australia's capacity grew about 5% in the first quarter of fiscal 2026, but growth appears set to slow. The airline expects full-year capacity growth of about 3% in fiscal 2026. Fiscal 2026 net capital expenditure is expected to be about AUD 800 million, AUD 100 lower than previously guided.

Virgin's new market position is a clear improvement, materially reducing complexity, lowering capital intensity, and improving margins. It has repositioned toward a midmarket value proposition, placing fares between Qantas' full-service offering and its budget subsidiary Jetstar. At this price point, Virgin is targeting premium leisure travelers, small to medium-sized businesses, and value-conscious corporates. We expect it to maintain roughly one-third of Australia's domestic aviation market in a two-player market with Qantas.

Virgin's fiscal 2025 underlying EBIT rose 30% to AUD 650 million in its inaugural result after returning to the ASX. Underlying revenue increased 8% to AUD 5.8 billion on higher utilization, growth in ancillary revenue, and strong uptake in its Velocity loyalty program.

Virgin Australia has returned to the ASX, with shares closing at AUD 3.23 on the first day of trade, about 11% above its initial public offer price of AUD 2.90. Now targeting a midmarket value proposition, Virgin's fares are between Qantas' full-service offering and its budget subsidiary Jetstar.

Virgin's new market position is a clear improvement, materially reducing complexity, lowering capital intensity, and improving margins. It has repositioned toward a midmarket value proposition, placing fares between Qantas' full-service offering and its budget subsidiary Jetstar. At this price point, Virgin is targeting premium leisure travelers, small to medium-sized businesses, and value conscious corporates. We expect it to maintain roughly one-third of Australia's domestic aviation market in a two-player market with Qantas.