Virgin Australia rises as Morningstar hikes forecast after trading update

Virgin Australia Holdings

17/11/2025 24:36

Updates

** Shares of Virgin Australia VGN.AX rise as much as 1.6% to A$3.190

** Morningstar says VGN has taken a modest domestic capacity share from Qantas in the first quarter

** The airline said on Friday that domestic capacity grew 5% in 1Q26, sees 4% growth in 1H26

** Morningstar increases FY26 underlying EBIT forecast by 12% to A$745 million ($486.41 million)

** The investment research firm also marginally hikes fair value estimate to A$2.9 from A$2.8

** Morningstar sees around 3% growth in revenue per available seat kilometre (RASK), but sees pricing to come under competitive pressure, especially from Qantas, as fuel costs decline over the coming years

** Also flags that Virgin's stock screen as "expensive"; adds market is pricing in a "continuation of strong margin growth", which could be "unsustainable"

** As of last close, Virgin shares gain nearly 1% since relisting in June

($1 = 1.5316 Australian dollars)

 (Reporting by Rajasik Mukherjee & Nikita Maria Jino in Bengaluru)

 ((Nikita.Jino@thomsonreuters.com;))