Virgin Australia Delivers Strong FY24 Results, Driven by Ongoing Transformation

Virgin Australia has announced impressive financial results for FY24, showcasing the success of its ongoing transformation efforts. The airline reported group revenue of $5.4 billion, marking a 6.8% increase over FY23. The underlying Earnings Before Interest and Tax (EBIT) reached $519 million, an 18.2% rise, reflecting a robust 9.7% margin.

Key Highlights

1. Financial Performance:

• Group Revenue: $5.4 billion, up 6.8% from FY23.
• Underlying EBIT: $519 million, an 18.2% increase, with a 9.7% margin.
• Airline Business Revenue: $5.1 billion, up 5.6%.
• Velocity Frequent Flyer Revenue: $409 million, up 23.8%.

2. Operational Achievements:

• Guests Flown: 19.2 million on nearly 400 daily flights.
• Fleet Renewal: Six new Boeing 737 MAX-8 aircraft were delivered, and 14 Boeing 737-800 aircraft were reconfigured with the latest-generation interiors.
• Customer Experience: Significant investments, including baggage tracking and the Rapid Rebook self-service tool.

3. Employee Recognition:

• Thank You Gift: 54,000 Velocity Points and a $1,000 staff travel credit for all team members.
• Enterprise Agreements: Eight successfully renegotiated across various workgroups.

4. Velocity Frequent Flyer Program:

• Revenue Growth: 23.8% increase to $409 million.
• Membership: Surpassed 12 million members with a 13% increase in active members.

Jayne Hrdlicka, CEO of Virgin Australia, highlighted the airline’s strong performance and the success of its transformation journey. “This is our second consecutive year of after-tax profit, demonstrating the ongoing success of our transformation journey despite industry challenges,” she said. Hrdlicka emphasised reinvesting in the business and customer experience to remain competitive.

She also expressed gratitude to the team: “To acknowledge and thank our people for their contribution, we are gifting all team members 54,000 Velocity Points, in addition to the $1,000 travel credit.”

Race Strauss, CFO of Virgin Australia, noted the success of the transformation program in offsetting cost inflation and strengthening the balance sheet. “Our disciplined approach to cost management has enabled us to deliver even better value for our customers,” he said.

Looking Ahead

Virgin Australia plans to build on this momentum in FY25, focusing on executing transformation initiatives to mitigate the impact of inflation and continue delivering value to customers and shareholders.