Fleet renewal on track as Virgin Australia MAX 8 ferries in
By Andrew Curran.
Virgin Australia’s first aircraft delivery of the year is on its way to Australia. The B737-8, VH-8VG (msn 67037), departed Orlando’s Melbourne (MLB) Airport for Kona (KOA) via Ontario (ONT) on March 1, 2026 (local time) and is expected to land in Brisbane (BNE) early afternoon on March 3 (local time).
VH-8VG Peregian Beach is Virgin Australia’s fifteenth MAX 8. Aero South Pacific understands it will begin revenue flights on March 7.
The influx of new aircraft at the rival Qantas Group carriers and the sheer heft of that company’s PR team is overshadowing an interesting fleet renewal programme underway at Virgin Australia.
In the latter half of 2025, six new MAX 8s were delivered to Virgin Australia. In the same period, the airline also took delivery of its first two E190-E2s.
Meanwhile, VA quietly exited three B737-800s – the bog-standard Boeings that make up the majority of the airline’s fleet. Virgin Australia also disposed of a single F100 and A320-200.
VA finished calendar 2025 with 107 aircraft, an increase of three aircraft over the course of the final half of the year.
A dozen new MAX 8s for Virgin Australia over the next 12 months
Over the next 12 months, Virgin Australia plans to take delivery of twelve B737-8s, including VH-8VG. Another two E190s are expected by June 30, 2026, a further two in the 2026/27 financial year, and the last two in the following financial year.
By the end of this final year, VA’s fleet is expected to inch up to 108 aircraft.
Virgin Australia has wrapped up F100 ops but holds onto two aircraft. Both are due to exit the fleet by June 30. Aero South Pacific understands both have been acquired by Alliance Airlines and will be used for parts to support that airline’s existing Fokker fleet.
Three A320-200s remain in the fleet but Virgin Australia anticipates ending A320 flights by June 30. All three are leased and will be returned to their lessors over the following 12 months. The F100s and A320s primarily work Virgin Australia’s fly-in-fly-out charters in Western Australia.
Over the six months to June 30, 2026, two B737-800s will exit the Virgin Australia fleet. One has done so already. VH-VUG (msn 34438) ferried from Brisbane to Arizona’s Pinal Airpark (MZJ) in mid-January.
Virgin Australia's longer-term plan to consolidate fleet types
When the full complement of new aircraft are delivered, Virgin Australia will operate twenty-six MAX 8s and eight E190s. The airline intends to consolidate its fleet types to B737s and E190s, although the older B737-800 and B737-700 fleets are not going anywhere anytime soon.
“Over the longer term, Virgin Australia expects that its fleet will grow in line with longer term RPT demand of approximately 3% annually,” the airline’s most recent investor presentation reads.
“The ability to responds to changes in demand is retained with flexibility in the fleet and wet-leased options.”
Virgin Australia’s most high-profile wet lease arrangement is with Qatar Airways. Their aircraft and crews operate VA’s flights between Australia and Doha. But Virgin Australia also uses eleven aircraft wet-leased from Alliance Airlines, Airnorth, and Link Airways to support local RPT and FIFO flights.
Last week, Virgin Australia announced a net after tax profit of AUD341.1 million (USD242.1 million) for the six months to December 30, 2025.
It was less than the AUD925 million (USD656.4 million) after tax net profit announced by the larger Qantas Group the day before for the same six month period, but far better than the NZD40 million (USD24 million) after tax net loss announced by Air New Zealand.
“Virgin Australia’s investment approach remains disciplined and strategic,” Chief Financial Officer Race Strauss told an investor presentation last week.
Virgin Australia decides to buy nine MAX 8s
One recent “important investment decision” was settling the funding decision on nine of the twelve B737-8s still to be delivered. Would they be leased or purchased?
“In line with our capital allocation framework, we have decided to purchase these nine aircraft,” said Strauss. Four will be purchased before June 30 and the remaining five by December 31.
“With the aviation cycle strong, purchasing these nine MAX aircraft delivers a favourable outcome through lower maintenance and depreciation costs, lower cost of debt financing relative to leasing with high loan to value ratios resulting in minimal cash outlay,” the CFO added.
“It reduces our FX risk given we are funding an Australian dollar denominated debt as opposed to US dollar leases. It enhances our fleet and operational flexibility and provides a potential source of future liquidity.”
Strauss said Virgin Australia retained the flexibility to convert to leases in the future if the airline needed to.
Around 70% of Virgin Australia’s fleet is leased and the longer-term goal is to reduce this to around 50%.
Strauss also noted that Virgin Australia hadn’t decided whether to buy or lease the last four E190s due for delivery in the 2027 and 2028 financial years, but indicated that the airline “would follow the same approach that was consistent with our capital allocation framework.”
Photos: Virgin Australia.
Contact the writer: andrew@aerosouthpacific.com