Virgin Australia (VGN) investor relations material

Executive summary

• Achieved or exceeded all FY25 financial metrics, with strong underlying earnings and revenue growth across both Airline and Velocity segments.

• Transformation Program delivered over $450M in gross benefits, supporting margin expansion and operational improvements.

• Maintained a conservative balance sheet, with net debt at the low end of the target range and robust liquidity.

• Commenced long-haul flying with Qatar Airways and expanded Velocity Frequent Flyer program.

• Celebrated 25 years of operations, emphasizing team culture and customer experience.

Financial highlights

• Revenue reached $5.81B, up 8.5% year-over-year and slightly ahead of prospectus.

• Underlying EBIT was $664M, up $145M and 170 basis points from prior year, with an 11.4% margin.

• Pro forma underlying NPAT was $331M, up 28% year-over-year and in line with prospectus.

• Statutory NPAT was $479M, down 12.3% due to IPO/Qatar transaction costs and non-recurring FY24 credits.

• Free cash flow of $697M and closing group cash of $1.1B.

Outlook and guidance

• FY26 outlook reaffirmed, expecting continued revenue and profit growth, driven by air travel demand, transformation, and loyalty program expansion.

• Domestic capacity to grow ~4% in 1H FY26, with flexibility to adjust in 2H based on demand.

• Transformation program to deliver $400M+ gross benefits in FY26, split roughly half between cost and revenue initiatives.

• Airlines segment expects 13 new Boeing 737-8 (Max) and four Embraer E190-E2 deliveries by June 2026.

• No material adverse impact expected from RBA credit card changes in FY26.