Virgin Australia Holdings Limited · ASX:VGN
Virgin Australia — H1 2026 Earnings Presentation
34 slides from Virgin Australia's earnings presentation, Feb 27, 2026
Slide 1: 1HFY26 Results
27 FEBRUARY 2026 1HFY26 Results For personal use only
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Virgin Australia Holdings Limited (ABN 54 100 686 226) ( Virgin Australia ) to Forward -looking statements may also be made, verbally or in writing, by members of the Group’s management or provide summary information about Virgin Australia and its as
Slide 3: 1HFY26 Result overview
1HFY26 For personal use only Result overview Virgin Australia 1HFY26 Results 3
Slide 4: Our ambition is to be Australia's most loved airline
Our ambition is to be Australia’s most loved airline – by our people, our guests and our owners ….with a winning team that generates strong loyalty from guests and delivers outstanding results, with an unwavering commitment to safety For personal use only A simple, focused Experiences our Operationa
Slide 5: Key messages
Key messages For personal use only RASK growth of 6.4% 11.7% EBIT growth with Strong balance sheet with driven by strong demand further margin expansion leverage at 0.9x net debt / and revenue transformation despite high inflation EBITDA Results demonstrate Virgin Australia’s ability to deliver on i
Slide 6: Earnings history
Earnings history Significant growth in underlying EBIT and margins over past three years For personal use only Underlying EBIT ($m) Underlying EBIT Margin (%) 664 14.8% 14.4% 519 12.1% 225 439 10.7% 185 8.1% 169 7.1% 6.8% 490 439 334 270 FY23 FY24 FY25 FY26 FY23 FY24 FY25 FY26 1H 2H 1H 2H Virgin Aus
Slide 7: 1HFY26 Result overview
1HFY26 Result overview Results reflect strong customer demand and transformation $490m 14.8% For personal use only • Result ahead of expectations despite inflationary headwinds driven by strong customer demand and benefits from Underlying EBIT1 Underlying EBIT Margin1 Transformation Program Up 11.7%
Slide 8: Airline segment overview
Airline segment overview Strong customer demand and operational performance $419m 13.1% For personal use only • Strong market demand, especially leisure customers due to event driven travel Underlying EBIT1 Underlying EBIT Margin1, 2 • This better than expected leisure demand Up 13.5% on 1HFY25 Up 4
Slide 9: Velocity segment overview
Velocity segment overview Record external billings $74m 30.7% For personal use only • Revenue growth of 9.5% with record external billings which grew at 18.8% Underlying EBIT1 Underlying EBIT Margin1, 2 • New partners added with strength across the Up 14.8% on 1HFY25 Up 140bps on 1HFY25 portfolio of
Slide 10: Transformation
Transformation On track to deliver more than $1 billion in gross transformation benefits since FY24 For personal use only Gross transformation benefits ($m) 1 >$200m >$1.1b • Over $200m in gross transformation benefits in the first half – on track to exceed >$400m in FY26 >$200m • Transformation pro
Slide 11: 1HFY26 Financial information
1HFY26 For personal use only Financial information Virgin Australia 1HFY26 Results 11
Slide 12: 1HFY26 Group underlying results
1HFY26 Group underlying results Continued EBIT margin expansion Underlying Change For personal use only 1HFY26 1HFY25 YOY Underlying Income Statement1 ($m) • Result ahead of expectations with very strong December revenue Revenue and income 3,322.9 3,039.1 283.8 9.3% performance Operating expenditure
Slide 13: Underlying operating expenses
Underlying operating expenses Transformation partly offsetting industry wide headwinds Change • Total underlying operating expenses increased 1HFY26 1HFY25 For personal use only YOY 8.4% with lower fuel and transformation Underlying operating expenses ($m) benefits more than offset by increases in o
Slide 14: Underlying EBIT drivers
Underlying EBIT drivers U nderlying U nderlying EBIT Margin + 40bps EBIT Margin 14.4 % 14.8 % +51m +11.7% 19 For personal use only 182 171 490 9 439 34 Major items RASK vs 1HFY25 Airports $49m +6.4 % Maintenance $32m Labour $32m Activity vs 1 H F Y 2 5 D o m es t i c ASK +4.2% D&A $30m SHI ASK ( 6.7
Slide 15: Cash flow
Cash flow Free cash flow $678m Financing cash flow ($454m) 10 26 For personal use only 219 • Strong operating cash flow of 235 253 $644m inclusive of $90m income tax payments 90 • Limited engine and aircraft spend this half, capex mainly 12 ($m) relates to maintenance 644 Capex spend 133 • Asset pro
Slide 16: Group net debt and liquidity
Group net debt and liquidity Leverage below target range ahead of aircraft purchases in 2H 31 Dec 2025 30 Jun 2025 Change Balance sheet item $m $m $m Interest-bearing liabilities For personal use only • Conservative leverage in advance of aircraft Secured aircraft finance facilities 510.4 730.1 219.
Slide 17: Capital Allocation framework
Capital Allocation framework Disciplined approach to create shareholder value Capital Allocation Framework For personal use only Capital Operating Cash Flow Maintain net debt within a long-term Business as usual operations / maintenance capex Prioritise balance sheet and business as ~1.0x - 2.0x und
Slide 18: Fleet profile and order book
Fleet profile and order book Disciplined growth of more efficient aircraft, simplifying fleet Virgin Australia narrowbody fleet profile1 AOC Aircraft Jun 2025 Change Dec 2025 Change Jun 2026 Change Jun 2027 • Long term fleet growth expected to be For personal use only 737-800 79 (3) 76 (2) 74 (2) 72
Slide 19: Aircraft financing – buy versus lease
Aircraft financing – buy versus lease Purchase of aircraft delivers significant value through lower costs and additional liquidity • 70% of fleet currently leased 1 • 12 remaining Boeing 737 - 8 (Max) aircraft to be delivered over next 12 months For personal use only • Three to be leased 2HFY26 • Ni
Slide 20: FY26 Outlook
FY26 For personal use only Outlook Virgin Australia 1HFY26 Results 20
Slide 21: FY26 Outlook
FY26 Outlook Reflects strong start to the year Demand for air travel expected to remain strong and Virgin Australia will remain disciplined with its capacity growth adding 2% - 3% domestic capacity in 2HFY26 and 3% in 1QFY27. For personal use only Actual Forecast 1QFY26 2QFY26 1HFY26 2HFY26 1QFY27 D
Slide 22: A clear plan to deliver continued earnings and margin growth
We have a clear plan to deliver continued earnings and margin growth For personal use only Expand partner Grow active coalition + members (incl. Drive deeper & deepen financial loyalty engagement services) Optimise through data to Virgin Enable fleet c ost of sales , personalisation Australia transf
Slide 23: Appendix
For personal use only Appendix
Slide 24: Virgin Australia overview and investment thesis
Virgin Australia overview and investment thesis For personal use only • We are the second largest airline group operating in the structurally attractive 1 Australian aviation market • Our business has been reinvigorated through a comprehensive strategy reset, refocusing our target customer segment s
Slide 25: Embedding sustainability at the core of our business
Embedding sustainability at the core of our business For personal use only Protecting our Natural World Caring for our People, Guests and Communities Maintaining Customer Trust Climate Change Safety and wellbeing Cybersecurity and Privacy • Target 22% reduction in net Scope 1 and Scope 2 • Trusted,
Slide 26: 1HFY26 Group Statutory to Group Underlying reconciliation
1HFY26 Group Statutory to Group Underlying reconciliation 1HFY26 1HFY25 Significant Significant Statutory Underlying Statutory Underlying Income Statement ($m) Items Items For personal use only Revenue and income 3,322.9 - 3,322.9 3,039.1 - 3,039.1 Operating expenses Labour and staff related (736.0)
Slide 27: Reconciliation of EBIT and Significant Items
Reconciliation of EBIT and Significant Items ($m) 1HFY26 1HFY25 For personal use only Statutory EBIT 460.3 329.9 Significant Items IPO related share based payments 22.8 - Restructuring and transformation costs 4.4 20.1 IT Transformation projects 18.2 26.6 Impairment of assets and accelerated depreci
Slide 28: Airlines segment overview
Airlines segment overview For personal use only 1HFY26 1HFY25 Change YOY Key Financial Metrics Underlying Revenue and income ($m) 3,189.1 2,919.1 270.0 9.2% Underlying EBIT ($m) 419.3 369.4 49.9 13.5% Underlying EBIT margin (%) 13.1% 12.7% 40bps Operating Metrics Passengers carried (m) 11.1 10.8 0.4
Slide 29: Velocity segment overview
Velocity segment overview For personal use only 1HFY26 1HFY25 Change YOY Key Financial Metrics Underlying Revenue and income ($m) 242.4 221.4 21.0 9.5% Underlying EBIT ($m) 74.4 64.8 9.6 14.8% Underlying EBIT margin (%) 30.7% 29.3% 140bps Operating Metrics Points earned 1 (b) 29.2 26.9 2.3 8.6% Poin
Slide 30: Balance Sheet
Balance Sheet 31 Dec 2025 30 June 2025 Change Balance sheet item $m $m For personal use only Property, plant and equipment 2,887.9 2,712.6 175.3 Intangible assets 40.3 41.9 (1.6) Fixed assets 2,928.2 2,754.5 173.7 Inventories 33.1 29.0 4.1 Operating receivables 451.0 483.9 (32.9) Operating payables
Slide 31: Group debt maturity profile
Group debt maturity profile as at 31 December 2025 ($m) 600 For personal use only 500 400 302 300 17 5 42 240 200 191 100 104 144 100 73 122 81 80 101 92 96 72 71 74 55 5 49 19 20 9 9 10 11 8 12 0 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 FY34 FY35 FY36 FY37 FY38 Secured Debt - Aircraft Aircraft Lease
Slide 32: Glossary
Glossary Ancillary revenue – Revenue generated in association with Charter services – Contracted air services primarily Net working capital – Total balance of current trade and airline passenger revenue. It includes revenue from services where a commercial or government customer hires a other receiv
Slide 33: Glossary
Glossary PPTS – Percentage Points. SME – Small to medium enterprise. Velocity or Velocity Frequent Flyer – Virgin Australia’s loyalty program. Revenue per Available Seat Kilometre (RASK) - Airlines Strategic Net Promoter Score (NPS) – Based on a segment underlying revenue and income, excluding month
Slide 34: Contact details
For personal use only Authorised for release by the Virgin Australia For further information: Investors For further information: Media Virgin Australia Holdings Limited ABN 54 100 686 226 Disclosure Committee on 27 February 2026 Chris Vagg| General Manager, Investor Relations Virgin Australia Group
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