Virgin Australia is one of the country’s leading full-service airlines, offering domestic and short-haul international flights across a broad network. Founded in 2000, the airline underwent major restructuring after entering voluntary administration in 2020, emerging under new ownership by Bain Capital. Headquartered in Brisbane, Virgin Australia operates a modern fleet primarily composed of Boeing 737 aircraft and competes directly with Qantas and Jetstar in the highly competitive Australian aviation market. With a focus on value-for-money service, operational reliability, and loyalty through its Velocity Frequent Flyer program, Virgin has steadily rebuilt its financial and market position. The airline is now preparing for a return to the ASX in 2025, signalling renewed investor confidence and long-term strategic growth.
Financial Performance: Strong Recovery and IPO Momentum
Virgin Australia is poised to return to the Australian Securities Exchange (ASX) on 24 June 2025, aiming to raise A$685 million through an initial public offering (IPO) at A$2.90 per share. This pricing values the airline at an enterprise value of A$3.6 billion, including net debt of A$1.31 billion. The IPO has garnered significant investor interest, with brokers reporting demand exceeding the offer size.
The airline has demonstrated robust financial performance, reporting underlying earnings before interest and tax (EBIT) of A$519 million for FY24, an 18.2% increase year-on-year. This marks Virgin Australia’s second consecutive year of profitability since its restructuring under Bain Capital.
Virgin Australia’s domestic market share has risen to 35% as of December 2024, surpassing Qantas’s 34.6%, according to the Australian Competition and Consumer Commission (ACCC). This shift underscores the airline’s successful turnaround and positions it favourably for its upcoming IPO.
Strategic Initiatives: International Expansion and Sustainability Commitments
In a significant strategic move, Virgin Australia has entered into a partnership with Qatar Airways, which includes a 25% equity stake by the latter. This alliance facilitates Virgin Australia’s return to long-haul international flights, with services to Doha from Sydney, Brisbane, and Perth commencing in June 2025, and Melbourne following in December.
The partnership also enhances Virgin Australia’s Velocity Frequent Flyer program, offering members increased reward seat availability and seamless connectivity to over 100 destinations across Europe, the Middle East, and Africa.
On the sustainability front, Virgin Australia has committed to sourcing Sustainable Aviation Fuel (SAF) through agreements with Viva Energy and Renewable Developments Australia. These initiatives aim to reduce the airline’s carbon footprint and support the development of a domestic SAF industry.
Market Positioning: Operational Excellence and Competitive Edge
Virgin Australia’s operational performance has been exemplary, leading major Australian airlines in on-time performance and flight completion rates. In January 2025, the airline achieved a 99.2% flight completion rate and a departure on-time performance of 78%, outperforming its competitors.
The airline’s strategic acquisition of additional Boeing 737 aircraft, following the withdrawal of Regional Express (Rex) from capital city routes, has bolstered its capacity and network reliability. This move has contributed to Virgin Australia’s increased domestic market share and operational resilience.
Virgin Australia’s focus on customer experience, operational efficiency, and strategic partnerships positions it strongly in the competitive Australian aviation market. The upcoming IPO is expected to provide the capital necessary to further these initiatives and solidify the airline’s market position.