Down 34% in 2026, are Virgin Australia shares a good buy today?

Virgin Australia Holdings Ltd (ASX: VGN) shares closed on Thursday trading for $2.30.

Shares in the S&P/ASX 300 Index (ASX: XKO) airline stock, and chief competitor to Qantas Airways Ltd (ASX: QAN), have struggled in 2026.

Indeed, at Thursday’s close, Virgin Australia shares are now down 34% year to date. That trails the 18% losses posted by Qantas shares this calendar year, and is well behind the 1.55% loss on the ASX 200.

The stock is also now trading below its initial public offering (IPO), with investors who bought on the first day of trading nursing even steeper losses.

Investors able to take part in Virgin Australia’s IPO picked up shares for $2.90 apiece. The ASX 300 airline stock began trading on the ASX on 24 June. Shares opened on the day at $3.12 and closed trading for $3.23 each.

A lot of the losses in 2026 were delivered in March following the onset of the Iran war. With fuel prices surging and some travel routes facing potential disruptions, Virgin Australia stock plunged 23.6% in the month just past.

So, with shares having lost almost a third of their value in 2026, is it time to buy the dip?

Should you buy Virgin Australia shares today?

Catapult Wealth’s Blake Halligan recently analysed the outlook for the ASX 300 airline stock (courtesy of The Bull).

“The Australian airline delivered a strong result in the first half of fiscal year 2026, with underlying earnings before interest and tax increasing by 11.7% to $490 million,” Halligan said. “Revenue per available seat kilometre (RASK) was up 6.4%.”

He added:

The group’s transformation program delivered more than $200 million in gross benefits. The company has now exhausted tax losses and will begin paying tax, with franking credits at $94 million.

But with the company facing potentially increasing costs, Halligan isn’t ready to pull the trigger yet, with a hold recommendation on Virgin Australia shares.

He concluded, “While demand and yields remain supportive, rising expenses suggest a balanced hold stance.”

What’s the latest from the ASX 300 airline stock?

Virgin Australia reported its half-year results on 27 February.

Highlights included a 9.3% year-on-year increase in revenue for the six months to $3.32 billion.

But Virgin Australia shares came under some pressure, closing down 0.3% on the day, with statutory net profit after tax (NPAT) of $341 million, down 27.9%, primarily due to prior period tax benefits.

Commenting on the company’s performance on the day, Virgin Australia CEO Dave Emerson said:

The group’s continued strong performance clearly demonstrates that our constant focus on transformation and innovation is not only delivering strong financial outcomes but strengthens our ability to remain a robust competitor for years to come.

The post Down 34% in 2026, are Virgin Australia shares a good buy today? appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.