Virgin Australia's (ASX:VGN) strong core earnings-per-share beat was driven compositionally by lower depreciation and amortization, with underlying earnings before interest, taxes, depreciation, and amortization slightly ahead of, but in line with expectations, according to a Friday note by Jarden.
The airline reported fiscal first-half underlying earnings of AU$0.351 per share, up from AU$0.316 a year earlier. Revenue for the six months ended Dec. 31, 2025, was AU$3.32 billion, compared with AU$3.04 billion a year earlier.
The company's strong revenue per available seat kilometer is expected to continue into the second half of fiscal 2026, Jarden said. Overall, capacity growth is largely in line with prior guidance.
The investment firm reaffirmed an overweight rating and price target of AU$4 on Virgin Australia.