Virgin Australia has continued its strong upwards trajectory, delivering an outstanding performance in the fiscal year 2024 (FY24).
Building on its return to profitability in FY23 after an 11-year drought, the airline has accelerated its growth, despite a range of external challenges in what remains a highly competitive industry.
FY24 Financial Performance
The numbers speak volumes about Virgin Australia’s remarkable turnaround. The airline’s underlying Earnings Before Interest and Taxes (EBIT) soared by an impressive 18.2%, reaching $519 million.
This significant increase was achieved despite a myriad of challenges facing the aviation sector. This has included supply chain constraints, unprecedented industry inflation, and fierce competition.
Virgin Australia’s airline business, encompassing domestic, short-haul international, and regional/charter flying, recorded a robust revenue of $5.1 billion. This represents a 5.6% increase from the previous year.
This growth is particularly noteworthy given the complex operating environment and speaks to the effectiveness of the company’s strategic initiatives.

Virgin’s Transformation Strategy
A key driver of Virgin Australia’s resurgence lies its comprehensive transformation agenda, now in its fourth year of implementation. This strategic overhaul has been instrumental in not only returning the airline to profitability but also in fostering sustainable growth.
The transformation efforts have been multifaceted, focusing on several key areas:
Revenue Management and Ancillary Revenue: Optimizing pricing strategies and diversifying income streams.
Digital Channels: Enhancing the customer experience through improved online platforms and services.
Fleet Reconfiguration: Modernizing and optimizing the aircraft fleet for improved efficiency and passenger comfort.
Operations Productivity: Streamlining processes to enhance operational efficiency.
Ongoing Cost Reduction: Implementing sustainable cost-saving measures without compromising service quality.

Fleet Investment in FY24
Virgin Australia has continued investment in new, more fuel-efficient aircraft through the year. In FY24, the airline took delivery of six new Boeing 737 MAX-8 aircraft. Additionally, 14 Boeing 737-800 aircraft were reconfigured with latest-generation interiors, enhancing the onboard experience for passengers.
Virgin Australia Leadership Comments
Jayne Hrdlicka, Virgin Australia’s Chief Executive Officer, expressed pride in the company’s achievements: “Virgin Australia has delivered a very strong performance in FY24. This is our second consecutive year of after-tax profit. It demonstrates the ongoing success of our transformation journey, despite what has been a challenging year for our industry.”
Hrdlicka emphasized the importance of this financial success in positioning the airline to deliver great value and choice to Australian travelers.
She also highlighted the company’s ability to reinvest in its business and customer experience, ensuring Virgin Australia remains a formidable competitor in the market.
Race Strauss, Virgin Australia’s Chief Financial Officer, provided insight into the financial strategies underpinning the airline’s success.
“This is a strong result that demonstrates the success of our transformation program which has offset cost inflation and strengthened our balance sheet. It has enabled further strategic investments in our customers and people.”

Future Outlook
Virgin Australia’s commitment to the Australian community remains steadfast. The airline has supported over 130,000 stranded Rex and Bonza customers with free-of-charge flights. It also assisted in the repatriation of over 2,000 Australians from the Middle East in partnership with Qatar Airways.
Looking ahead to FY25, Virgin Australia plans to build on its momentum. It remains focussed on the execution of transformation initiatives to mitigate the ongoing impact of inflation. With a proposed minority equity investment from Qatar Airways on the horizon, the future looks bright for the Australian airline.
The airline’s clear turnaround and sustained growth serve as a testament to the effectiveness of its strategic vision and the support of its team members.

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