Virgin Australia rises; Citi upgrades to 'buy', sees minimal impact from MidEast conflict

Virgin Australia Holdings

16/04/2026 05:17

Updates

** Shares of Virgin Australia VGN.AX rise 4.8% to A$2.64, gaining for a second consecutive session

** Citi upgrades the air carrier VGN.AX to "buy" from "neutral"

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

** 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 help VGN maintain its EBIT outlook

** Six of seven analysts covering the stock rate it "buy" or higher, while one rates it "hold"; their median PT is A$3.80 - LSEG data

** VGN stock down about 24.6% YTD, including day's moves

($1 = 1.3945 Australian dollars)

 (Reporting by Sruthi Narasimha Chari in Bengaluru)

 ((Sruthinarasimha.chari@thomsonreuters.com))