Virgin Australia Holdings Ltd (ASX: VGN) shares are in the green on Friday after the airline released its FY26 results.
At the time of writing, the Virgin share price is up 2.14% to $2.87.
There were plenty of numbers for investors to unpack, with earnings and revenue both moving higher during the year.
However, income investors may be paying particularly close attention to one part of the result.
Virgin Australia has declared its first dividend since returning to the ASX last year.
So, how much will shareholders receive?
Image source: Getty Images
Virgin Australia declares a fully-franked dividend
Virgin has declared a fully-franked dividend of 7.6 cents per share for FY26.
It's a notable moment for shareholders, with this being the airline's first dividend since returning to the ASX last year.
At the current share price of $2.87, the payment works out to a yield of almost 3% before franking credits.
The company said the dividend follows its capital allocation framework, which focuses on keeping the balance sheet strong and funding the business first.
Virgin Australia finished FY26 with net debt of $1.2 billion and leverage of 0.9 times underlying EBITDA, below its target range of 1 to 2 times.
It also had $1.84 billion in cash, cash equivalents, and term deposits at the end of June.
When will Virgin Australia pay its dividend?
Virgin shares are locked in to trade ex-dividend on 14 September.
The record date will follow on 15 September, with the dividend due to be paid one month later on 15 October.
And because it is fully franked, shareholders can also benefit from franking credits.
What did Virgin Australia report?
The airline delivered a stronger result in FY26, with underlying EBIT rising 13.4% to $753 million.
Underlying net profit after tax (NPAT) increased 21.9% to $404 million, while statutory NPAT rose 4.7% to $501 million.
Underlying revenue increased 8.1% to $6.28 billion, helped by strong customer demand and growth across both the airline and Velocity businesses.
Virgin Australia's airline segment reported underlying EBIT of $616 million, up 15.2%, while Velocity EBIT increased 12.3% to $143 million.
Operating cash flow also came in at $1.3 billion for the year.
What's next on the horizon?
Seeing dividends return is another positive for shareholders since Virgin Australia relisted.
Looking ahead, the company said demand and forward bookings remain strong, although first-half FY27 underlying EBIT is expected to be relatively flat.
Domestic capacity is expected to fall by around 3% during the half, while revenue per available seat kilometre is forecast to rise 6% to 8%.
If earnings keep moving in the right direction, shareholders could have more dividends to look forward to.
