Citi upgrades Virgin Australia, sees minimal impact from Middle East conflict

Virgin Australia Holdings

15/04/2026 20:55

** Citi upgrades air carrier Virgin Australia VGN.AX to "buy"

** VGN anticipates higher fuel costs and adjusted its capacity for 2H26 citing recent price volatility due to war in the Middle East

** Expects higher fuel costs of around A$30 million to A$40 million ($21.51 million to $28.68 million) for 2H26

** Brokerage says net impact to FY26 is expected to be minimal despite the conflict, as high levels of fuel hedging helped VGN maintain its EBIT outlook

** 6 of 7 brokerages rate the stock "buy" or higher, while one rates it at "hold"; their median PT is A$3.80 - LSEG data

** VGN stock down about 28% YTD

($1 = 1.3945 Australian dollars)

(Reporting by Sruthi Narasimha Chari in Bengaluru)

((Sruthinarasimha.chari@thomsonreuters.com))