US EditionVirgin Australia Flags Higher Fuel Costs, Adjusts Airfares on Mideast War Impact
Virgin said fare increases and a 1% domestic capacity cut will offset a $30 million to $40 million fuel-cost hit, while its profit outlook stays unchanged.
- On Wednesday, Virgin Australia announced a 1 per cent reduction in domestic flight capacity for the current quarter to offset rising fuel costs stemming from the conflict in the Middle East.
- Refining costs for jet fuel have soared from around US20 a barrel in February to a peak of around US120, forcing airlines to pass costs onto consumers through ticket increases.
- Virgin flagged a $30 million to $40 million hit to its bottom line, though the airline remains confident in its hedging strategy covering 92 per cent of Brent crude oil.
- Rival Qantas previously slashed domestic capacity by 5 per cent, flagging a potential $800 million fuel cost increase as both carriers implement fare hikes to manage volatility.
- Virgin Australia retains flexibility to take further actions and has secured fuel supplies to support operations well into May 2026 amid continued market volatility.
19 Articles
19 Articles
Virgin Australia flags higher fuel costs, adjusts airfares on Mideast war impact
Virgin Australia on Wednesday forecast higher fuel costs and said it has adjusted airfares and capacity for the second half, citing recent price volatility linked to the conflict in the Middle East.
Virgin Australia to Raise Airfares as Fuel Expected to Cost at Least $30 Million More
Australia’s second largest airline, Virgin Australia, will raise airfares in response to surging fuel costs linked to the Iran War. The update from Virgin comes just a day after Australia’s flag carrier Qantas revealed it would be cutting domestic flights and increasing European routes. On April 15, Virgin confirmed it had altered both ticket prices and capacity in response to higher operating costs. The airline did not specify which routes woul…
Virgin Australia to join Qantas and hike prices to cope with fuel crisis
Major airlines up rise fares Qantas and Virgin to offset rising fuel costs READ MORE: How one Aussie state is looking after itself during the fuel crisis Virgin Australia has followed Qantas and will lift the prices of some airfares to offset rising fuel costs. Aussies will also have fewer…
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