Virgin Australia (ASX:VGN) expects domestic capacity to reduce by 3% in the first half of fiscal 2027, according to a Friday Australian bourse filing.
Its total capacity increased 1.8% in fiscal 2026, with domestic capacity growth of 2.9% partly offset by a 4.5% decline in short-haul international capacity.
The airline will continue to manage capacity with discipline, it added. Its revenue per available seat kilometer is expected to grow 6% to 8% in the period, reflecting disciplined capacity management as well as strong demand.
Its shares rose 1% in recent trading on Friday.