Virgin Australia’s shares rise by 11.4 %

Written by Scott Murdoch and Christine Chen

Sydney (Reuters) -Virgin Australia shares increased by 11.4 % in its commercial appearance on Tuesday, as the market value raised to $ 2.58 billion ($ 1.7 billion), with deals makers contemplating the revival of the Australian lists market.

The first strong appearance of the airline came, as oil prices fell by more than 5 % after Israel agreed to the proposal of US President Donald Trump to a ceasefire with Iran, which reduces the fears of turmoil in the offer in the Middle East. Some flights have been restored.

The airline sold 236.2 million shares at $ 2.90 each, and its evaluation of $ 2.32 billion on a fully diluted basis.

The arrow closed its session for the first time at $ 3.23, as it exceeded a 1.1 % increase in the Australian S&P/ASX200.

The company’s spokesman said in a statement that the scheduled services for Virgin Australia will be resumed to Doha, which is run by Qatar Airways, on Tuesday with a delay after the reopening of the Qatari airspace.

CEO Dave Emerson told local media that he was not very concerned about the impact of the conflict due to the airline’s focus on the Australian market, which constitutes 90 % of its business.

“With no possible escalation in the Middle East, this type of land pressure is placed on the price of oil, which is a little positive for the airline,” said Joseph Koh, a Blackwattle Investment Partners, who bought Virgin Stock, said:

Virgin has reduced its international business to be a local airline under the ownership of Bain. Earlier in June, long -term flights to Doha were resumed through the lease contract with state -owned Qatar Airlines.

Qantas shares, the main competition of Virgin Australia, closed 2.4 % higher on Tuesday after international oil prices dropped, after Iran did not take any measure to disrupt the oil and gas tanker movement through the Strait of Hormuz.

Fuel

Virgin revealed in the exchange file that it has surrounded 98 % of its use of the expected fuel in Brent oil with a capacity of $ 70 a barrel for the first half of 2026. 86 % of its use of the expected fuel has surrounded the same price in the second half.

Koh said that if the competition remains rational, the high oil prices will be transferred to the final users. “… in the short term, I think the market tends to take it only as a positive and positive oil -oil engine for the Virgin, so it is also useful today.”

Virgin, the second largest airline in Australia, was removed by the market share after the Qantas Airways lines, in 2020 after it was saved by the Bain Capital Special stock giant from the administration.