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Virgin Australia expects to complete its Boeing 737-8 deliveries during the fiscal year that began July 1, although its fleet size will not grow as the new additions will be matched by retirements.
During its annual earnings briefing, Virgin projected it will receive five 737-8s during the period, which is its fiscal 2027. While these are the last of the -8s it has on order, it also has 10 737-10s on order. The -10s are expected in the first half of fiscal 2028, which is late in calendar year 2027.
Virgin Australia’s mainline narrowbody fleet total will remain at 104 aircraft by the end of fiscal 2027. It plans to phase out five 737-800s during the same year. The total does not include domestic wet-leased aircraft.
While fleet numbers will not be boosted, the deliveries will help improve the ratio of new aircraft to old. Virgin expects to have 26 737-8s and 78 737NGs by the end of fiscal 2027.
The carrier’s regional and charter unit, Virgin Australia Regional Airlines (VARA), is expected to take delivery of two Embraer 190-E2s during fiscal 2027. It will also phase out three Airbus A320s that are being held for lease return. This will give VARA a fleet of six E190-E2s by the end of the fiscal year.
Virgin plans to reduce its domestic capacity by 3% in fiscal 2027. For fiscal 2026, the carrier increased domestic capacity by 2.9% and cut international capacity by 4.5%. Virgin is predominantly a domestic carrier with a handful of international short-haul routes.
The carrier took delivery of 17 aircraft during fiscal 2026, including 13 737-8s and four E190-E2s.
Virgin reported a net profit of AU$501 million ($360 million) for fiscal 2026, which was up 4.7% from the previous year’s profit. CEO Dave Emerson said the results show that Virgin has become “a stronger and more resilient airline” since its post-COVID-19 relaunch.
“Our strategy is working ... we have built a simpler, more focused business with a primarily domestic network, targeted short-haul international services and global connectivity through our airline partners,” Emerson said.
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