RBC keeps Buy rating for Virgin Australia stock with AUD 3.75 target

Published on 10/07/2026 at 05:38 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Virgin Australia stock last stood at EUR 1.71 on September 24, 2026 after EUR 1.74. Underlying earnings rose 13.00 percent to AUD 753 million in fiscal 2026.

Virgin Australia, AU0000400616, Illustration mit AI erstellt.

Virgin Australia stock has an AUD 3.75 target from RBC Capital, which maintained its Buy rating on September 15, 2026, according to Markets Insider. The analyst action gives investors a defined benchmark while Virgin Australia continues to balance earnings growth against higher airline costs.

Fiscal 2026 earnings improved

Virgin Australia reported underlying earnings of AUD 753 million for fiscal 2026, up 13.40 percent from the prior year, according to the Australian Competition and Consumer Commission on September 15, 2026. The result is the key operating comparison behind the current analyst stance.

The companys fiscal 2026 earnings call also reported AUD 6.30 billion of revenue, up 8.00 percent, and an underlying earnings margin of 12.00 percent, according to Yahoo Finance. The same call showed statutory net profit after tax of AUD 501 million, up 5.00 percent, separating underlying improvement from accounting effects.

Fuel and capacity remain central

The ACCC said Virgin Australia delivered its fiscal 2026 result despite higher jet fuel costs and cited resilient demand, higher fares and capacity adjustments as supporting factors. Virgin Australia recorded an on-time arrival rate of 76.30 percent in July 2026, below the industry long-term average of 80.50 percent, making execution a counterweight to the earnings progress.

Management also described a first dividend of AUD 0.076 per share for the relisted company in the fiscal 2026 earnings call. Virgin Australia expects domestic capacity to decline 3.00 percent in the first half of fiscal 2027 while targeting 6.00 percent to 8.00 percent growth in revenue per available seat kilometer, keeping margin delivery tied to pricing discipline.

Frankfurt quote remains dated

Virgin Australia was last at EUR 1.71 on Frankfurt on September 24, 2026 at 3:25 p.m. CEST, versus the Frankfurt prior close of EUR 1.74. The Lang & Schwarz prior close for October 5, 2026 was EUR 1.76.

The further course of trading is shown by the continuously updated real-time quote of Virgin Australia stock.