Virgin Australia Raises Airfare Forecast on Fuel Costs
The airline expects fuel costs to rise by up to A$40 million in the second half of 2026. It has adjusted airfares and capacity to manage the price volatility.
VIRGIN AUSTRALIA HOLDINGS LT has announced a revision to its fuel cost forecasts and operational strategy, citing the significant impact of price volatility stemming from the ongoing conflict in the Middle East. The airline, based in Australia, now anticipates that fuel expenses will rise by approximately A$30 million to A$40 million ($21.38 million to $28.51 million) during the second half of fiscal 2026. This update follows a similar move by the national carrier, QANTAS AIRWAYS LTD, which recently increased its own fuel cost projections due to the rising price of jet fuel. Market participants reacted positively to the news, with shares of the company climbing as much as 12.3% to reach A$2.64, marking their highest point since mid-March.
