Virgin Australia Holdings Limited · ASX:VGN
Virgin Australia — FY2026 Earnings Presentation
34 slides from Virgin Australia's earnings presentation, Aug 28, 2026
Slide 1: FY26 Results
For personal use only 28 August 2026 FY26 Results
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Virgin Australia Holdings Limited (ABN 54 100 686 226) (Virgin Australia) to With respect to forward-looking statements concerning climate, sustainability and other ESG matters, these are based provide summary information about Virgin Australia and i
Slide 3: Results overview
For personal use only Results overview 2
Slide 4: Key messages
Key messages For personal use only Earnings quality continues Investing to strengthen Strategy is working to improve long-term competitive position Earnings growth and Stronger commercial and Targeted investments in margin expansion in operational outcomes Velocity, fleet, AI and people challenging
Slide 5: Performance measured against value creation pillars
Performance measured against value creation pillars For personal use only A simple, focused Experiences our Operational Exceptional financial business guests love excellence performance3 • Value carrier with • NPS momentum • OTP of 77.1% (up • Fuel hedging targeted customer continues 30bps) with >80
Slide 6: Earnings history
Earnings history Underlying EBIT has increased more than 70% over the past three years with margins improving 320bps, supported by the Transformation Program For personal use only Underlying EBIT ($m) Underlying EBIT Margin (%) 753 664 263 14.4% 14.8% 519 225 12.1% 12.0% 439 11.4% 10.7% 185 9.7% 8.8
Slide 7: FY26 Results overview
FY26 Results1 overview Strategic decisions provided resilience and delivered strong earnings growth in FY26 $753m 12.0% • Strong customer demand, continued delivery For personal use only of benefits from Transformation Program and effective hedging program helped offset above EBIT EBIT Margin inflat
Slide 8: Airline segment overview
Airline segment1 overview Strong market demand as customers continue to prioritise travel $616m 10.2% • FY26 RASK – strong growth of +5.9% reflecting For personal use only underlying demand and delivery of commercial transformation EBIT EBIT Margin up 15.2% on FY25 up 60bps on FY25 • June quarter RA
Slide 9: Velocity segment overview
Velocity segment1 overview Strong external billings and member growth $143m 29.4% • Underlying Revenue – growth of 8.1% with strong For personal use only external billings growth of 12.4% EBIT EBIT Margin • Active members – continue to grow (up 9%), up 12% on FY25 up 110bps on FY25 with increased bi
Slide 10: Transformation
Transformation Delivered more than $1.1 billion in gross transformation over past three years with more to come Gross transformation benefits ($m)1 For personal use only >$450m • Over $450m in gross transformation benefits >$1.1bn delivered in FY26 • Transformation Program essential to enable Virgin
Slide 11: FY26 Financial information
FY26 Financial For personal use only information Virgin Australia FY26 Results 10
Slide 12: Group underlying results
Group underlying results Continued EBIT margin expansion Underlying Change For personal use only FY26 FY25 YOY • Strong underlying result and customer demand, Underlying Income Statement ($m) 1 with transformation continuing to deliver EBIT Revenue and income 6,277.9 5,809.7 468.2 8.1 % growth and m
Slide 13: Underlying EBIT drivers
Underlying EBIT drivers Underlying EBIT +60bps Underlying EBIT Margin 11.4% Margin 12.0% $89m For personal use only FY26 FY25 YOY Airlines 6 Underlying EBIT($m) 616 535 81 Underlying EBIT margin 10.2 % 9.6 % 60bps Velocity (309) Underlying EBIT($m) 143 127 347 16 Underlying EBIT margin 29.4 % 28.3 %
Slide 14: Underlying operating expenses
Underlying operating expenses Transformation partly offsetting industry wide headwinds Change For personal use only FY26 FY25 YOY Underlying operating expenses ($m) • Labour costs (up 8.3%) – increase reflects transformation investment, growth of the Labour and staff related 1,393.8 1,286.5 (8.3)% b
Slide 15: Cash flow
Cash flow Free cash flow $908m Financing cash flow ($183m) For personal use only • Strong operating cash flow of $1,300m inclusive of $159m 55 income tax payments • Capex spend reflects increase 278 in fleet renewal including debt (884) (171) (36) financed aircraft purchases (34) (254) 1,844 and is
Slide 16: Group net debt and liquidity
Group net debt and liquidity Balance sheet remains conservative with leverage under target range 30 June 2026 30 June 2025 Change YOY For personal use only Balance sheet item $m $m $m • Prudent application of Capital Allocation Interest bearing liabilities Framework and strong cash generation result
Slide 17: Fleet profile and order book
Fleet profile and order book Transition to more efficient and younger fleet Virgin Australia narrowbody fleet profile1 For personal use only June AOC Aircraft 2025 Change 2026 Change 2027F • Significant investment in new, efficient aircraft Boeing 737-800 79 (5) 74 (5) 69 continues with 17 deliverie
Slide 18: Capital Allocation Framework
Capital Allocation Framework Declaration of inaugural dividend is application of framework in action Capital Allocation Framework For personal use only Group Operating Cash Flow Maintain net debt within a long-term ~1.0x - 2.0x Business as usual operations / maintenance Prioritise balance sheet and
Slide 19: FY27 Outlook
FY27 Outlook For personal use only Virgin Australia FY26 Results 18
Slide 20: FY27 Outlook
FY27 Outlook Demand and forward bookings remain strong with consumers continuing to prioritise travel Based on forward fuel curve1, 1HFY27 underlying EBIT expected to be broadly in line with 1HFY26 For personal use only Key assumptions • Capacity: will continue to be managed with discipline, with do
Slide 21: 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 and (incl. + Enable fleet transformation Optimise cost of sales, cost to serve and Drive deeper loyalty to Virgin Australia deepen engagement through data personali
Slide 22: Appendix
Appendix For personal use only Virgin Australia FY26 Results 21
Slide 23: Virgin Australia overview and investment thesis
Virgin Australia overview and investment thesis • We are the second largest airline group operating in the highly attractive1 Australian aviation market For personal use only • Our business has been reinvigorated through a comprehensive strategy reset, refocusing our target customer segment supporte
Slide 24: Velocity FY27 and beyond
Velocity FY27 and beyond Investment in FY27 expected to drive long-term EBIT growth For personal use only Flat EBIT expected in FY27; gains to be tempered by FY27 one-off RBA reset One-off reset of FS Offset by volume growth and substantial Investing to investment in billings, driven by RBA surcharg
Slide 25: Embedding sustainability at the core of our business
Embedding sustainability at the core of our business Caring for our People, Protecting our Natural World Maintaining Customer Trust For personal use only Guests and Communities Climate Change Safety and wellbeing Cybersecurity and Privacy • Commitment to target net zero by 2050 • Trusted, safe opera
Slide 26: FY26 Group Statutory to Group Underlying reconciliation
FY26 Group Statutory to Group Underlying reconciliation FY26 FY25 For personal use only Significant Significant Income Statement ($m) Statutory Items Underlying Statutory Items Underlying Revenue and income 6,352.9 (75.0) 6,277.9 5,809.7 – 5,809.7 Operating expenses Labour and staff related (1,473.7
Slide 27: Reconciliation of EBIT and Significant Items
Reconciliation of EBIT and Significant Items ($m) FY26 FY25 For personal use only Statutory profit before net finance costs and tax (EBIT) 777.3 424.5 Significant Items Expiry of COVID-19 Credits (75.0) – IPO related share-based payments 40.8 16.0 Restructuring and transformation costs 18.0 55.5 IT
Slide 28: Airlines segment overview
Airlines segment overview FY26 FY25 Change For personal use only Key Financial Metrics Underlying revenue and income ($m) 6,023.9 5,576.1 447.8 8.0 % Underlying EBIT ($m) 615.9 534.7 81.2 15.2 % Underlying EBIT margin (%) 10.2 % 9.6 % 60bps n/a Operating metrics Passengers carried (m) 1 21.3 20.7 0.
Slide 29: Velocity segment overview
Velocity segment overview FY26 FY25 Change For personal use only Key Financial Metrics Underlying revenue and income ($m) 486.6 450.0 36.6 8.1 % Underlying EBIT ($m) 142.9 127.3 15.6 12.3 % Underlying EBIT margin (%) 29.4 % 28.3 % 110bps 3.9 % Operating metrics Velocity Points earned (b)1 57.2 54.1
Slide 30: Balance Sheet
Balance Sheet 30 June 2026 30 June 2025 Change For personal use only Balance sheet item $m $m $m Cash, cash equivalents and term deposits 1,843.5 1,118.2 725.3 Property, plant and equipment 3,376.0 2,712.6 663.4 Other assets 1,021.5 1,041.3 (19.8) Total assets 6,241.0 4,872.1 1,368.9 Unearned revenu
Slide 31: Group debt maturity profile
Group debt maturity profile as at 30 June 2026 ($m) 900 For personal use only 800 700 600 646 500 $m 400 17 300 42 240 200 213 136 176 105 100 116 113 19 133 98 90 87 77 106 54 87 67 65 33 35 26 28 30 31 30 — FY27 FY28 FY29 FY30 FY31 FY32 FY33 FY34 FY35 FY36 FY37 FY38 Secured Debt - Other Aircraft L
Slide 32: Glossary
Glossary AOC – Air Operator’s Certificate. Charter services – Contracted air services primarily where a Net Debt – Total interest bearing liabilities and lease liabilities, net of commercial or government customer hires a whole aircraft (or a block total of cash and cash equivalents (including short
Slide 33: Glossary
Glossary PPTS – Percentage Points. SME – Small to medium enterprise. Velocity or Velocity Frequent Flyer – Virgin Australia’s loyalty program. For personal use only Revenue per Available Seat Kilometre (RASK) – Airlines segment Strategic Net Promoter Score (NPS) – Based on a monthly market underlyin
Slide 34: Contact and authorisation for release
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 28 August 2026 Chris Vagg Virgin Australia Group Corporate Affairs Level 11, 275 Grey St
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