Virgin Australia accelerates Boeing 737-800 exit

Virgin Australia will phase out five Boeing 737-800s in fiscal 2027 while taking delivery of five 737-8s, sharpening its shift toward newer narrowbody aircraft across its Australian domestic network. The fleet move leaves the airline’s mainline narrowbody fleet at 104 aircraft by the end of FY27, with a higher share of next-generation jets in service.

The plan followed Virgin Australia’s latest full-year results, which showed continued fleet renewal and strong operating performance. The airline took delivery of 17 aircraft in FY26, including 13 737-8s and four Embraer E190-E2s, and ended the year with 21 737-8s in service. The 737-8 is more fuel-efficient than the 737-800, supporting lower operating costs and improved emissions performance.

Virgin Australia’s broader fleet strategy also points to a gradual increase in aircraft ownership. FY27 capital spending is expected to fund the five 737-8s and two E190-E2s, while the airline continues to retire older jets and adjust capacity across its domestic and short-haul international operations. The planned mix of 26 737-8s and 78 737NG aircraft by the end of FY27 signals a further step in the carrier’s narrowbody renewal programme.