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Stock of the day
Virgin Australia
Virgin Australia projects solid demand and revenue growth for FY2026, with $800 million in planned capital expenditure and domestic capacity expansion.
(AI video summary)
This video was created on 14 November 2025 for IG audiences by ausbiz.
ASX code: VGN
Virgin Australia signals strong demand at AGM
Virgin Australia reaffirmed confidence in the domestic travel market at its annual general meeting (AGM), citing solid demand despite broader market volatility.
Domestic capacity rose 5% in the first quarter (Q1) of financial year (FY) 2026 and is expected to grow 4% in the first half. Revenue per available seat kilometre (RASK) is forecast to increase 3% – 5%, in line with guidance. Net capital expenditure is targeted at about $800 million for FY2026.
Virgin’s share price was little changed on Friday as the market sold off sharply.
Investment outlook
The Australian aviation market remains a duopoly dominated by Qantas and Virgin, but slowing corporate travel and economic headwinds could weigh on growth. Virgin’s operational metrics suggest resilience, yet the sector’s cyclicality and sensitivity to consumer trends remain key risks for investors.
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