Delays in new aircraft deliveries are proving to be costly for Virgin Australia.

VIRGIN AUSTRALIA BOEING 737 MAX 8 VH-8IH (MSN 66650)

Virgin Australia is paying more to keep its aging fleet in service as Boeing delays deliveries of new aircraft. The airline has extended leases on older Boeing 737-800s, driving up maintenance costs while waiting for fresh aircraft to arrive. According to its FY25 earnings report, Virgin expects 13 Boeing 737 MAX 8 deliveries in this financial year, which will finally allow it to phase out six leased 737-800s. 

The carrier has already received four MAX 8s and hopes these new jets will ease both costs and efficiency pressures. Alongside the 737 MAX program, Virgin Australia is also set to receive four Embraer E190s to bolster regional and fly-in fly-out operations in Western Australia. 

The new MAX 8s are leased through Dublin-based lessor Avolon which already supplies eight aircraft to Virgin under a sale-and-leaseback deal. Despite the delays, Virgin remains confident in its growth strategy and is also strengthening its partnership with Qatar Airways, which recently took a 20% stake in the carrier.