Virgin Australia has updated its emissions baseline and outlined its FY30 targets, aiming to reduce net Scope 1 emissions intensity by 27% from an FY24 baseline. The company’s approach focuses on continued improvements in fleet efficiency and operational efficiency programs to achieve this goal.
Material actions and disclosures
Virgin Australia’s FY26 net Scope 1 emissions intensity was 6.3% below the FY24 baseline, reflecting improvements in fleet renewal and operational efficiency. Gross Scope 1 emissions were 2,558,146 tCO₂e, while market-based Scope 2 emissions were 3,809 tCO₂e. The company has also introduced more fuel-efficient aircraft, including the Boeing 737-8 (MAX) and the Embraer E190-E2, to reduce fuel consumption and emissions.
During FY26, Virgin Australia continued to implement operational initiatives such as route optimisation, weight reduction, single-engine taxiing, and data-enabled flight planning. These initiatives delivered estimated annual fuel savings of approximately 62,300 barrels, equivalent to an estimated 25,600 tCO₂e reduction.
Forward commitments
Virgin Australia has an ambition of achieving net zero carbon emissions by 2050. The company’s FY30 decarbonisation strategy aims to minimise net emissions through commercially and operationally viable levers across three pillars: reducing direct emissions from operations, addressing residual emissions in compliance with regulatory mechanisms, and collaborating with stakeholders.
Of the 27% net reduction in emissions intensity by FY30, 12% is expected to be achieved through fleet renewal and operational fuel efficiencies, and 15% through the planned use of Australian Carbon Credit Units (ACCUs) required to meet compliance obligations.
Virgin Australia also expects to begin surrendering carbon credits under the Safeguard Mechanism (SGM) from FY27, subject to emissions exceeding the applicable baseline.
Further details on these initiatives and targets can be found in the company’s FY26 Annual Report.