VIRGIN Australia’s first financial report since re-listing on the ASX has revealed the carrier’s annual net profit after tax declined by 12.3% to $479 million (TD breaking news).
However the adjusted figure taking into account one-off or non-core items showed the carrier’s pro forma underlying net profit improved by 27.8% on last year to $331 million.
Meanwhile revenue increased handsomely by close to 9%, delivering VA a $456 million bump to $5.81 billion.
VA said it expects to see continued growth in both revenue and underlying profit for the 2026 financial year, driven largely by a rise in travel demand, its expanding Velocity loyalty program, and the impact of its transformation initiatives.
The delivery of 12 new B737 Max aircraft and four new E190-E2s in Jun next year will help cater for a predicted uptick in demand, with domestic capacity tipped to grow by 4% next year.
Of importance to travellers and agents, VA confirmed it still has $93 million worth of COVID credits on its balance sheet, due for expiry on 30 Jun 2026.
Any credits not used will result in a non-cash benefit for the carrier that will not be included in its future underlying EBIT.
The Velocity division recorded a $127 million underlying EBIT for the 12 months to 30 Jun, up $12 million on the previous period.
The program piled on close to a million new members as part of an aggressive member acquisition strategy, while there was also a 12% growth in active members.
