Virgin Australia profits soar to $404m after avoiding costly fuel crisis

Virgin Australia has avoided the fuel crisis that smashed Qantas and posted surging profits.

In its latest market update, Virgin Australia said underlying net profits after tax were $404m, up 21 per cent on last year.

The company said it managed to avoid much of the fuel carnage other airlines suffered because it fully hedged against rising fuel prices.

This paid off as the price of jet fuel refining margins jumped from about $US20 ($A28) a barrel to as high as $US130 ($180).

Meanwhile, Qantas said the net impact of the war in the Middle East cost the company $420m in profit, as rising fuel costs outpaced the demand for international travel.

This was Virgin Australia’s first full-year result since the business relisted in June 24 2025, with shareholders being rewarded with a dividend or 7.6 cents per share.

Virgin Australia chief executive Dave Emerson said the company’s strategy of building a simpler and stronger business was working.

“Looking ahead, we remain focused on providing value and choice to Australians to meet their travel needs,” he said.

“As an industry, we all have a role to play in managing costs so aviation doesn’t become

Originally published as Virgin Australia profits soar to $404m after avoiding costly fuel crisis