Virgin Australia (ASX:VGN) announced a set of financial results for the six months ended Dec. 31, 2025, reporting an underlying EBIT of $490 million.
This represents an 11.7% increase compared to the prior corresponding period, driven by a 9.3% rise in total revenue to $3.23 billion.
Management attributed the growth to sustained customer demand in the leisure sector and the ongoing benefits of the group's transformation program, which helped offset inflationary pressures and rising airport charges.
The airline's underlying net profit after tax rose 20.7% to $279 million, reflecting a transition to a 30% effective tax rate as the company fully utilised its previous tax losses.
However, statutory NPAT fell by 27.9% to $341 million, a decrease primarily due to the significant one-off recognition of deferred tax assets in the previous year.
Key operational metrics showed positive momentum, with revenue per available seat kilometre increasing by 6.4% and the underlying EBIT margin expanding to 14.8%.
Financial stability remains a priority, with the group reporting a net debt to underlying EBITDA ratio of 0.9x, comfortably below its target range.
The results also noted a dilutionary impact on earnings per share due to share rights associated with the company’s initial public offering.