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Virgin Australia Holdings Limited · VGN (ASX) · FY26 (to 30 June 2026)

Virgin Australia Velocity by the numbers

Velocity is the high-margin part of Virgin Australia. In the year to June 2026 it made A$142.9 million of underlying EBIT on A$486.6 million of revenue, a 29.4% margin against about 12% for the group, and supplied about a fifth of the group's A$753.2 million underlying EBIT. Group revenue was A$6.28 billion and statutory profit after tax A$501.2 million, and the company declared a fully franked dividend of 7.6 cents a share.

Written and reviewed by the Points Plug team. Last reviewed .

What Virgin Australia Holdings Limited reports

Loyalty revenue
A$486.6 million
Velocity segment revenue in FY26, up 8.1% from A$450.0 million, with external billings up 12.4% (FY26 results presentation).
Members
About 13 million
Velocity members at the June 2025 share offer, with about 80 commercial partners. Active members rose 9.0% in FY26 and more than 800,000 people joined; the FY26 presentation gives no member count.
Loyalty segment profit
A$142.9 million
Velocity underlying EBIT in FY26, up 12.3% from A$127.3 million, a 29.4% margin. Virgin Australia expects flat Velocity EBIT in FY27, citing the Reserve Bank of Australia's interchange reset and investment, then low double-digit growth in FY28 and FY29.

Card partners and deals

  • Commonwealth Bank: from 1 October 2026 CommBank Yello points, earned on savings accounts, home loans, insurance and credit cards, convert to Velocity Points (announced 18 August 2026, rate not given).
  • Velocity says points transfer from more than 50 eligible cards, from issuers including American Express, ANZ, Citi, NAB and Westpac; the results presentation names no bank partners.
  • Hotel programs Marriott Bonvoy, Hilton Honors, IHG One Rewards, Choice Privileges, Accor and Shangri-La Circle transfer points in.

How the miles are accounted for

  • Velocity is a reported segment with its own revenue and underlying EBIT, and Virgin Australia publishes points earned and redeemed: 57.2 billion and 38.6 billion in FY26.
  • The FY26 presentation gives FY25 comparatives of 54.1 billion earned and 36.9 billion redeemed, lower than the 56.8 billion and 39.7 billion in the FY25 annual report; the pages read do not explain the difference.
  • The FY25 annual report shows A$1,663.4 million of unearned revenue and income for the group at 30 June 2025. The pages read do not split it between unflown tickets and unredeemed points, and the FY26 annual report could not be read.

What it means

Virgin Australia returned to the ASX in June 2025, selling 30.2% of the company at A$2.90 a share to raise A$685 million at a market capitalisation of A$2.3 billion; Bain Capital, Qatar Airways Group, Virgin Group and Queensland Investment Corporation kept the rest. At the listing it put Velocity at about 13 million members and about 80 commercial partners.

Members earn faster than they redeem: 57.2 billion points earned against 38.6 billion redeemed in FY26, and the half-year results said the slower growth in redemptions had helped the margin, a benefit Virgin Australia expects to normalise. It guides to flat Velocity EBIT in FY27 because of the Reserve Bank of Australia's interchange reset and more investment, and is adding banking partners, starting with Commonwealth Bank's Yello rewards from October 2026.

What it means for your Virgin Australia Velocity balance

A program that earns more from selling miles to banks than from flights has an incentive to keep issuing them, and the deferred revenue line is the airline's own estimate of what an average outstanding mile will cost it to honour. Compare that with published valuations and with what Points Plug pays to see where your balance stands.

Virgin Australia Velocity finances: FAQ

How much profit does Velocity make?
A$142.9 million of underlying EBIT in the year to 30 June 2026, a 29.4% margin on A$486.6 million of revenue, per Virgin Australia's FY26 results presentation.
How many Velocity members are there?
About 13 million at Virgin Australia's June 2025 listing. The FY26 results presentation reports growth rather than a count: active members rose 9.0% and more than 800,000 people joined.
Is Virgin Australia a listed company?
Yes. Virgin Australia Holdings returned to the ASX under the code VGN in June 2025, selling 30.2% of the company at A$2.90 a share for a market capitalisation of A$2.3 billion.

Sources

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