Virgin Australia Posts $312.64 Million in Profit for FY2025

Virgin Australia, the second-largest airline group in Australia, on Friday said that the airline has posted a full-year statutory net profit after tax of $312.64 million, 12.3% lower than the $355.98 million reported in FY24 as the company reported its first full-year result since returning to the Australian Securities Exchange (ASX) in June this year.

In a regulatory disclosure with ASX this morning, the airline attributed part of the full year loss to transaction costs associated with the initial public offering (IPO) and Qatar Airways’ acquisition of a 25% equity stake in Virgin.

Operational performance improved during the financial year, with 76.8% of Virgin Australia flights departing on-time, up 7.2 percentage points on FY24. Virgin Australia achieved a completion rate of 98.4%, up 2.5 percentage points on FY24.

In the second half of FY25 (January and June 2025), Virgin Australia’s average on- time performance rate of 82.1% and average completion rate of 98.1% were the highest of the mainline Australian domestic airlines. The airline carried 20.7 million passengers in FY25 compared to 19.2 million in the previous year.

The Velocity segment, Virgin’s frequent flyer program, saw underlying EBIT lift 10.5% year on year to $82.89 million. The Virgin Australia board has decided not to declare a final dividend for FY25.

Fleet Addition

Virgin Australia received one new Boeing 737-8 (Max) in FY25, after receiving six in FY24. It expects to receive a further 12 in FY26.

The airline group is also expecting Virgin Australia Regional Airlines to receive four Embraer E190-E2 aircraft in FY26 to facilitate the progressive phase out of its Fokker F100 fleet. The regional airline’s Airbus A320s are being replaced by Boeing 737 aircraft.

By 30 June 2026, Virgin expects its fleet to have 107 aircraft, in addition to eight wet lease lines.

Transformation Program Advanced

Virgin Australia CEO and Managing Director Dave Emerson said that in FY25, Virgin Australia achieved strong Underlying earnings growth, relaunched long-haul services, advanced our Transformation Program, and lifted operational performance – all while delivering exceptional experiences for our guests.

The Group strengthened its partnership with Qatar Airways Group and returned to public ownership through a successful IPO, a strong endorsement of its clear strategy and market position.

“Our unwavering focus on customer service saw Virgin Australia named the World’s Best Cabin Crew for the seventh consecutive year, along with being awarded Best Regional Airline in Australia/Pacific and Best Airline Staff Service in Australia/Pacific by Skytrax,” Emerson added.

Virgin Australia Chief Financial Officer Race Strauss said that the Group’s strong financial performance and further expansion of the EBIT Margin in FY25 reflected the continued progress of the Transformation Program, its disciplined approach to investments and operational improvements.

“Importantly, all key financial metrics included in the Prospectus were met or exceeded,” Strauss added.