Virgin Australia: Costs Are In The Air

Virgin Australia expects to grow its earnings & costs in the second half of FY26.

The airline anticipates demand for air travel to remain strong, and will increase domestic capacity by around 2 to 3 %.

This means capex will increase in the second half, with the purchase of a new aircraft... in addition to restructuring and IT costs.

In the first half, underlying earnings were up 11.7% to $490 million. But Statutory profit came in 28% lower on the previous corresponding period.

Virgin says this compares to a more favourable first half in FY25, when the airline had benefited from the recognition of deferred tax assets. 

Virgin is considering a dividend for FY26, but has not declared any for the six months to the endof December.