Virgin Australia (ASX:VGN) said trading year-to-date for fiscal 2026 has seen strong demand, as the airline lowered its annual capital expenditure outlook to AU$800 million from AU$900 million, according to a Friday filing with the Australian bourse.
The company cut its net capital expenditure guidance for fiscal 2026 due to the rescheduling of maintenance events on the existing fleet to 2027 and an improved pre-delivery payment profile for Boeing fleet deliveries, boosting cash flow in the short term.
The Brisbane-based airline said total cost increases are broadly in line with expectations.
However, any benefits from reduced fuel costs in 2026 are expected to be offset by "above-the-line" investments in its Transformation Program initiatives.
Virgin Australia sees domestic capacity growth of 2% in the second half of fiscal 2026.
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