Story and image from Virgin Australia
Monday, October 14, 2024: After returning to profitability in FY23 for the first time in 11 years, Virgin Australia delivered an even stronger performance in FY24, with underlying EBIT increasing by 18.2% to $519 million. This result was achieved despite various challenges, which include supply chain constraints, unprecedented industry inflation and strong competition. The Group result represents an underlying EBIT margin of 9.7%, which is up from 8.8% in FY23.
Virgin Australia’s airline business (which includes domestic, short-haul international, and regional/charter flying) recorded revenue of $5.1 billion, an increase of 5.6%. Underlying EBIT was $392 million, an increase of 8.2%, achieving a margin of 7.6%. The airline margin is inclusive of Group overheads[2], a legacy contract with Velocity and significant investment in frontline team member salaries that came into effect during FY24.
Velocity Frequent Flyer recorded revenue of $409 million, an increase of 23.8%. Underlying EBIT was $115 million, a margin of 28.2%. Velocity delivered strong member engagement with a 13% increase in active members and growing its base to 12 million members.
The ongoing transformation agenda, now in its fourth year, has been critical to Virgin Australia’s return to profitability with continued strong contribution during FY24. Key areas of transformation focus include revenue management and ancillary revenue, digital channels, fleet reconfiguration, operations productivity and ongoing cost reduction. Velocity strategy execution delivered growth in the number of partners and products that earn points and the number of engaged members as well as program cost efficiency.