Virgin Australia (VA, Brisbane International) will purchase nine out of twelve incoming B737-8s in 2026 instead of dry leasing them, according to a stock exchange filing. The decision was largely influenced by a strong balance sheet underpinned by an operating profit of AUD490 million Australian dollars (USD343 million) in the six months that ended December 2025.
The carrier has earmarked AUD850-950 million (USD595-665 million) capital expenditures for fiscal year 2026, which ends in June 2026. The airline is also expecting sale-and-leaseback proceeds of AUD200 million (USD140 million) in the first half of 2026.
The carrier expects to take delivery of four B737-8s in the first half of 2026, including one that arrived on March 2, followed by another eight (including three leased) in the second half. In total, it expects to take twelve incremental units in 2026, closing its 26-unit orderbook for the type.
Virgin Australia also has unfilled orders for thirteen B737-10s, a part of the original 25-unit order. In 2024, the airline converted twelve of the B737-10 commitments into B737-8s, citing delivery delays at that time.
"Strong financial performance and cash generation have further strengthened the balance sheet, supporting continued investment in new fleet and value‑accretive growth opportunities," said chief financial officer Race Strauss.
Meanwhile, Virgin Australia Regional (VA, Perth International) is simultaneously phasing out its legacy fleets of F100s and A320-200s with the arrival of two more E190-E2s during the second half of 2025. Two more deliveries are expected by June 2026.
The incoming Boeing narrowbodies will replace the A320-200s, and management expects final operations for the Airbus jets by the first half of 2027.
ch-aviation data shows that Virgin Australia Group, whose carriers include Virgin Australia, Virgin Australia International (VA, Brisbane International), and Virgin Australia Regional, operate four A320-200s, nine B737-700s, fifteen B737-8s, seventy-five B737-800s, two E190-E2s, and two F100s.
