Virgin Australia is adjusting fares as rising costs across the aviation sector are "exacerbated by the situation in the Middle East", the Australian carrier said in a statement to Reuters on Friday.
The airline said on Friday costs across the aviation sector continue to rise, now significantly exacerbated by the situation in the Middle East.
Shares of the company closed 5% lower after dropping as much as 6.2% to their record low level of A$2.42 during the session.
The company's stock has shed 22% since the start of the Middle East conflict in February end.
The airline said its services operated by Qatar Airways remain impacted by the Middle East situation, with services cancelled up to and including at least Saturday, 28 March 2026, its website showed.
Virgin Australia in February said it was hedging 85% of fuel and 94% of foreign exchange for the second half of its financial year.
Virgin, in its first half results in February, highlighted that cost pressures persist across the industry, with costs growing above inflation in several areas of the aviation supply chain, including airport charges and maintenance.