Virgin Australia Holdings Limited (ASX: VGN) has announced its financial results for the year ending June 30, 2025 (FY25). The results show robust earnings, improved operational efficiency, and improved customer satisfaction.
The airline’s success reflects its ongoing commitment to excellence, driven by strategic initiatives and a dedicated workforce.
FY25 Financial Performance: A Year of Growth
In FY25, Virgin Australia delivered a strong financial performance, bolstered by its Transformation Program, which generated over $450 million in gross benefits. T
hese savings, combined with reduced fuel costs, helped counter inflationary pressures and boosted the company’s Pro Forma Underlying EBIT Margin by 1.8 percentage points to 11.2%.
The Transformation Program continues to be a cornerstone of Virgin Australia’s strategy, with expectations of further significant benefits in the coming years.
The Airlines segment performed exceptionally, achieving an Underlying EBIT of $535 million, a 36.4% increase ($143 million) compared to FY24.
This growth was fuelled by strong load factors, increased ancillary revenue, and an improved passenger mix, driving a 4.0% rise in Revenue per Available Seat Kilometre (RASK).
While Cost per Available Seat Kilometre (CASK) rose by 1.8% due to higher maintenance and airport fees, lower fuel costs helped offset this increase.
Excluding fuel, CASK grew by 6.6% compared to FY24. The airline carried 20.7 million passengers in FY25, up from 19.2 million in FY24, reflecting strong demand for air travel.
Operational Performance: Punctuality and Reliability
Virgin Australia significantly improved its operational performance in FY25. On-time departures reached 76.8%, a 7.2 percentage point improvement from FY24. Meanwhile, the flight completion rate rose to 98.4%, up 2.5 percentage points.
In the second half of FY25, the airline achieved an average on-time performance of 82.1% and a completion rate of 98.1%, outperforming other major Australian domestic airlines.
These metrics highlight Virgin Australia’s focus on reliability and efficiency, ensuring a seamless travel experience for passengers.
Customer Satisfaction Levels
The airline’s dedication to customer service shone through in FY25, with its Strategic Net Promoter Score rising by 4 points to 27. This improvement underscores Virgin Australia’s efforts to deliver exceptional guest experiences.
The airline’s commitment to its customers was recognized globally, as it was named the World’s Best Cabin Crew for the seventh consecutive year by Skytrax.
Additionally, Virgin Australia earned accolades for Best Regional Airline in Australia/Pacific and Best Airline Staff Service in Australia/Pacific.
Partnerships and Fleet Modernization
FY25 marked significant milestones for Virgin Australia. This included a successful IPO that returned the airline to public ownership and strengthened its partnership with Qatar Airways Group.
These achievements highlight the company’s clear strategy and strong market position. Looking ahead, Virgin Australia continues modernizing its fleet. This stood at 104 aircraft as of June 30, 2025, with an average fleet age of 13.4 years. Average age was 12.6 years for the Boeing 737 fleet.
One Boeing 737 MAX 8 was delivered in FY25, following six in FY24, with 13 more expected in FY26.
Virgin Australia Regional Airlines (VARA) is phasing out its Fokker F100 fleet, replacing them with Embraer E190-E2 aircraft, with four deliveries anticipated in FY26.
VARA’s Airbus A320s will also be replaced by Boeing 737s, with the total fleet size projected to reach 107 aircraft by June 30, 2026, supported by eight domestic wet lease lines.
Leadership Perspectives
Virgin Australia’s Chief Executive Officer and Managing Director, Dave Emerson, praised the team’s achievements.
“In FY25, we delivered strong earnings growth, relaunched long-haul services, and advanced our Transformation Program while prioritizing exceptional guest experiences.”
“Our successful IPO and deepened partnership with Qatar Airways Group reflect our clear strategy and market strength. Our team’s passion and dedication make these accomplishments possible. As we celebrate 25 years of Virgin Australia, we remain committed to being Australia’s most loved airline.”
Chief Financial Officer Race Strauss added comment. “Our robust financial performance and EBIT Margin expansion in FY25 demonstrate the success of our Transformation Program and disciplined approach to investments.”
“We met or exceeded all key financial metrics outlined in our Prospectus, positioning us for continued growth.”
Outlook for FY26
Virgin Australia anticipates continued revenue and profit growth in FY26. This is driven by sustained demand for air travel. It expects ongoing benefits from the Transformation Program, and growth in its Velocity loyalty program.
The airline shows modernizing fleet, a focus on operational excellence, and a customer-centric approach. Overall, Virgin Australia looks well-positioned to maintain its upward trajectory in FY26.
As the airline celebrates its 25th anniversary, it reflects on its journey from a bold startup to a leading force in Australian aviation.
