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The Markets
by Proactive
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The Markets
by Proactive
Proactive UK has moved.
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Transport

Virgin Australia posts strong FY25 earnings but IPO costs weigh on profit

Virgin Australia has reported a 28% rise in underlying earnings to A$664.4 million for the 2025 financial year, but transaction costs linked to its ASX relisting eroded bottom-line profit, with statutory net profit falling 12% to A$478.5 million.

The result marks the airline’s first since returning to the Australian Securities Exchange in June, following a A$685 million initial public offering (IPO) that saw majority owner Bain Capital sell down just over 30% of its stake. No dividend was declared for new shareholders.

Virgin flagged that unlike the prior year, the FY25 result did not include a A$278 million one-off benefit from the recognition of future flight credits.

Total revenue rose 3.1% to A$5.8 billion, while the airline’s underlying earnings margin improved to 11.4% from 9.7%. Across domestic and short-haul international operations—reported as a combined figure—underlying earnings increased 36.4% to A$534.7 million, with passenger load factors strengthening to 84.9%, up from 83%.

The airline’s Velocity frequent flyer program also contributed meaningfully, posting a 10% increase in earnings to A$127.3 million. Members earned nearly 57 billion points during the year, redeeming close to 40 billion.

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