How to Invest in Virgin Australia Shares? [2025]

Quick guide to investing in Virgin Australia shares

Step 1: Choose a brokerage platform that suits your investment goals and trading preferences, and then open an account.
Step 2: Fund your brokerage account.
Step 3: Search for Virgin Australia shares using the ticker symbol VGN.
Step 4: Place a share purchase order when you're ready to invest.
Step 5: Regularly monitor your investments.

Key takeaways

Virgin Australia Holdings Ltd (ASX: VGN) made a triumphant return to the Australian Securities Exchange (ASX) on June 24, 2025, marking a significant milestone five years after its 2020 administration. The airline's Initial Public Offering (IPO) was met with strong investor enthusiasm, as shares surged 8.10% on debut, closing at A$3.135—up from the offer price of A$2.90 per share. This robust performance underscores renewed confidence in Virgin Australia's strategic direction and market position.

The IPO raised approximately A$685 million through the issuance of 236.2 million fully paid ordinary shares, representing about 30.2% of the company's total issued capital. Based on the offer price, Virgin Australia's market capitalisation was projected at around A$2.3 billion on a fully diluted basis.

For investors interested in participating in Virgin Australia's journey, this article provides a comprehensive guide on how to invest in Virgin Australia shares.

Who is Virgin Australia?

Virgin Australia ranks as Australia’s second-largest airline group, serving around 20 million travellers each year with a focus on delivering value and travel options.

Since being restructured under Bain Capital's ownership, the airline has positioned itself as a value-focused carrier. It operates a fleet of over 100 aircraft across 76 routes, covering 38 destinations within Australia and on select short-haul international routes. Through partnerships with leading global airlines, Virgin Australia customers can access more than 650 international destinations.

Starting next week, the airline will launch its own long-haul international service between Australia and Doha via a wet lease agreement with Qatar Airways.

Supporting its airline operations is Velocity, its award-winning loyalty program, which boasts around 13 million members and partnerships with 80 commercial brands, making it one of the country’s largest frequent flyer programs.

What do we know about the Virgin Australia IPO?

Virgin Australia launched its Initial Public Offering (IPO) and listed on the Australian Securities Exchange (ASX) on Tuesday, 24 June 2025. The IPO offered 236.2 million fully paid ordinary shares at an offer price of A$2.90 per share, raising approximately A$685 million. This offering represented about 30.2% of the shares on issue, valuing the company at around A$2.3 billion on a fully diluted basis.

Trading of Virgin Australia shares on the ASX commenced on 24 June 2025, initially on a conditional and deferred settlement basis.

Here's a more detailed breakdown:

How to buy Virgin Australia stocks?

Virgin Australia's shares are now available for trading on the Australian Securities Exchange (ASX) following their official listing on June 24, 2025. From this date onward, the stocks can be bought and sold on the market.

Investors interested in purchasing Virgin Australia stocks can do so through licensed brokers once trading commences on the ASX. One such platform is moomoo, a regulated online trading platform that provides access to Australian shares, including Virgin Australia, after its listing.

Step 1: Open and verify your account

Download the moomoo app or visit the moomoo AU website to sign up. Complete identity verification by submitting required documents.

Step 2: Deposit funds

Link your bank account and transfer Australian dollars (AUD) to your moomoo account to prepare for trading.

Step 3: Search for Virgin Australia shares

Virgin Australia Holdings Ltd (Virgin Australia) has landed at the Australian Securities Exchange (ASX), and can be found the company by searching the stock code: VGN.

Step 4: Research the stock

Utilize moomoo’s real-time data, charts, and research tools to analyze Virgin Australia’s market performance.

Step 5: Place your order

Select the order type (market, limit, etc.), specify the number of shares, and submit your buy order.

Step 6: Monitor your investment and manage your portfolio

Track your holdings, set alerts, and stay updated with news and community insights through the moomoo platform. It's better for you to regularly review your investments and adjust your strategy as needed.

Why choose moomoo to buy Virgin Australia stocks?

Moomoo is a modern and feature-rich trading platform that offers several advantages for investors looking to buy Australian stocks like Virgin Australia:

1. CHESS-Sponsored Share Ownership

Moomoo operates under the CHESS (Clearing House Electronic Subregister System) framework, which means any ASX-listed shares you purchase are held directly under your name with a unique Holder Identification Number (HIN).

2. Competitive and Transparent Pricing

Brokerage starts at just AU$3 per trade or 0.03% of the transaction amount. There are no charges for opening an account, no inactivity fees, and no hidden costs.

3. Powerful Investment Tools

The platform offers robust research and analysis capabilities, including access to institutional investment data, company valuation ratios (like PE, PB, and PS), comprehensive financial statements, and customizable charts with 100+ technical indicators. AI-driven tools like trend forecasts and sentiment tracking further support smarter decision-making.

4. Dedicated Coverage of the Virgin Australia IPO

Moomoo offers in-depth content related to the Virgin Australia IPO, including real-time updates, expert analysis, key financials, and listing timelines.

5. Reliable Customer Support

Moomoo’s dedicated support team is available 24 hours a day, five days a week, so you can get assistance whenever you need it.

What are the financial results of Virgin Australia?

Virgin Australia has demonstrated a strong financial turnaround in recent years, returning to profitability after a decade of losses. The airline’s ongoing transformation efforts have driven significant improvements in revenue, earnings, and operational performance.

Key financial highlights

Source from: Virgin Australia IPO Prospectus

Virgin Australia's financial performance demonstrates a robust recovery and growth trajectory, with improvements across major profitability metrics:

• Revenue Growth: Total revenue and income increased from $5.01 billion in FY23 to $5.63 billion in FY24, with a forecasted rise to $5.80 billion in FY25. This reflects steady growth in demand and operational capacity.

• Net Profit: Net profit surged from $129 million in FY23 to $545 million in FY24, before slightly tapering to a projected $429 million in FY25. The FY24 net profit margin stood at 9.7%, up from 2.6% in FY23, and is forecast to remain healthy at 7.4% in FY25.

• EBITDA and EBIT Improvements:

• EBITDA increased significantly from $549 million (11.0% margin) in FY23 to $1,024 million (18.2% margin) in FY24, with a forecast of $780 million (13.4%) in FY25.

• Underlying EBITDA followed a similar trend, growing from $736 million in FY23 to $848 million in FY24, and projected to rise further to $1,074 million in FY25.

• EBIT rose from $241 million in FY23 to $683 million in FY24 and is forecast at $352 million in FY25.

• Underlying EBIT improved from $439 million (8.8% margin) in FY23 to $519 million (9.2%) in FY24, with a strong forecast of $659 million (11.3%) in FY25.

• Expense Management: Total expenditure increased from $4.77 billion in FY23 to $4.95 billion in FY24, and is projected to grow to $5.45 billion in FY25, reflecting cost pressures such as labour and fuel. Despite this, Virgin has maintained positive margins through operational efficiency and revenue growth.

Future outlook

Looking ahead, Virgin Australia is poised for further growth, bolstered by its strategic partnership with Qatar Airways. This alliance, which includes Qatar Airways acquiring a 25% stake in Virgin Australia, has received final approval from the Australian Competition and Consumer Commission (ACCC). The partnership facilitates the launch of 28 new weekly return services connecting Sydney, Brisbane, Perth, and Melbourne to Doha, beginning in June 2025.

Through this collaboration, Virgin Australia passengers will gain access to over 170 destinations across Europe, the Middle East, and Africa via Qatar Airways' extensive network. This expansion is expected to add approximately 2.65 million seats annually from Australia to Doha and inject $3 billion into the Australian economy over five years, supported by increased international tourism and spending.

The partnership also enhances the Velocity Frequent Flyer program, offering members increased opportunities to earn and redeem points on a broader range of international flights. With these developments, Virgin Australia is well-positioned to capitalize on international travel demand and strengthen its competitive stance in the global aviation market.

What are the key factors to consider before buying Virgin Australia shares?

Virgin Australia’s return to the ASX has attracted strong investor interest, especially amid a booming travel sector and renewed consumer confidence. However, before jumping in on day one, it’s important to look beyond the headlines and assess the airline’s fundamentals, competitive position, market risks, and long-term potential.

Here are 5 key factors investors should carefully consider before buying Virgin Australia shares.

1. Don’t be swayed by the hype

Virgin Australia’s return to the ASX is generating excitement, especially with strong travel demand and a well-known brand. However, just because an IPO is popular doesn’t guarantee long-term returns. It’s important to look past the buzz and carefully evaluate whether the business fundamentals support a solid investment.

2. This isn’t Virgin’s first time

Virgin Australia has been listed before—it went public in 2003 but collapsed during the pandemic and entered voluntary administration in 2020. Now relaunching under Bain Capital (which will keep 40% ownership) and Qatar Airways (25% ownership), the airline comes with a complex history and a new ownership structure that could influence its future performance.

3. Virgin vs. Qantas: a competitive landscape

Virgin will compete with Qantas, which still dominates the domestic market with a larger fleet, stronger earnings, and a much higher market value. Virgin is priced more modestly at listing, but it has a lot of ground to cover. While it may seem like a bargain, investors should weigh the value against Qantas’s established lead.

4. IPOs are often volatile

Initial public offerings can be unpredictable. Many well-known companies, like Facebook, Uber, and even the Commonwealth Bank, saw their shares drop soon after listing. Just because Virgin stock performs well on day one doesn’t mean it will continue to rise, so be cautious of short-term excitement.

5. Watch out for fuel prices

Airlines are highly sensitive to oil prices, with fuel being one of their biggest costs. When oil prices rise, profits can fall sharply. Past examples, such as Qantas’s struggles during oil spikes, show how vulnerable airline stocks can be. Virgin investors should keep global fuel trends in mind.

Risks vs. opportunities: Should you invest in Virgin Australia?

Investing in Virgin Australia presents a mix of significant opportunities and notable risks, shaped by recent market dynamics, company performance, and strategic developments.

Here are some key opportunities and risks of investing in Virgin Australia.

Potential opportunities

• Market Position and Growth: Virgin Australia has recently become Australia's largest domestic airline by market share, capturing 35% compared to Qantas' 34.6%, marking a historic shift in the domestic aviation landscape. This growth was driven by a 15.8% increase in passenger numbers by the end of 2024, outpacing Qantas and its subsidiary Jetstar.

• Strategic Partnerships and Expansion: Virgin Australia has secured a 25% minority stake investment from Qatar Airways, enabling it to return to long-haul international flying starting June 2025, with flights from major Australian cities to Doha. This partnership provides access to Qatar Airways' global network and is expected to boost competition, reduce airfares, and generate an estimated $3 billion economic benefit for Australia over five years.

• IPO Potential: Virgin Australia is anticipated to return to the Australian Stock Exchange in 2025, with an initial share price around $2.90 and a valuation of approximately $2.32 billion. The IPO could provide liquidity and growth capital, although it also introduces public market scrutiny and volatility.

Potential risks

• IPO Uncertainty: Historically, airline IPOs and Virgin Australia's own previous listing have shown poor risk-reward outcomes, with significant stock price declines post-listing. IPOs inherently lack extensive historical trading data, increasing investment risk.

• Operational Challenges: The airline has had issues with cancellations and delays, ranking second behind Jetstar in these metrics, which could impact customer satisfaction and brand reputation.