-- (Updates to add Virgin Australia's comment in the third and fourth paragraphs and an updated share move in the fifth paragraph)
Virgin Australia (ASX:VGN) is likely to extend flight cuts into the third quarter as fuel costs continue to soar higher amid the Iran war, said Bloomberg in a Friday report, citing a person familiar with the matter.
The report said that Virgin may also hike fares to offset fuel costs, but no final decisions have been made yet.
Virgin Australia, in response to' email request for comment, quoted its April 15 Australian bourse disclosure that said its fiscal year 2027 settings, including capacity, are under review.
"The Group continues to monitor the external environment and retains flexibility to take further actions if required," the company said in the April 15 filing.
The company's shares rose 1% in recent Friday trade.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)