Virgin Australia to Review Route Network After Profit Loss

Virgin Australia to Review Route Network After Profit Loss


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Virgin Australia has announced that they will be reviewing their entire route network, and cutting 750 jobs, as part of a drastic restructure to claw back a “disappointing” full year loss of $349.1 million.

On Wednesday, Virgin Australia posted their seventh consecutive annual loss. By cutting jobs and reviewing their route network, they hope to save $75 million a year in costs. They said that the result was driven by subdued trading conditions in the second half of the financial year, combined with fuel and foreign exchange headwinds and increased operational costs.


Virgin Australia will be reviewing every route that they operate, in hopes that it will lower operating costs and enable them to use aircraft more efficiently.

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This route map was displayed on news.com.au, and is missing quite a few routes that Virgin Australia currently operates. Some of these routes are:

  • Melbourne - Adelaide

  • Adelaide - Perth

  • Sydney - Adelaide

  • Brisbane - Adelaide

  • Melbourne - Mildura (My Home Town)

  • All routes to Launceston

  • All routes to Hobart

  • All routes to the Sunshine Coast

  • All routes to Darwin

And many more. Some of these routes I have flown on myself, and they have been full, so some of these route changes come as a shock to me.

I’m not sure if the route map above is offical, we haven’t heard anything directly from Virgin Australia in regards to route changes yet. If I am wrong on some of those routes, that’s why.


The head of Strategic Aviation Solutions, Neil Hansford, said the following about the situation:

“Virgin set out on course to become a head to head competitor with Qantas. They invested enormously when they weren’t a profitable business. They tried to be a Qantas alternative, focusing on expensive lounges and provide certain service levels when they were having losses.

Reviewing the flight route is the standard response when you’re in trouble like this.

I think cuts will be made to leisure routes, and the time has come to address whether they should stay in the international market because when you are in this much trouble, you need to get rid of anything that’s not making money.”


What do you think of this situation? Should Virgin Australia claw back it’s operations?

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Great post.

Just because a flight is full, or if a flight is full a few times, it doesn’t warrant profitability. It could be losing money in the long run.

In my opinion, they’re going to lose out on the U.S. market share significantly once AA/QF launch their new routes in the coming months.

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Also, heads up. That map seems really old.

Delta’s LAX-SYD flight isn’t listed. Virgin America is still there…

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Well, most of the routes I listed that aren’t there were launched when Virgin Blue was still around (Before 2011) but then again it could be old… We will just have to wait and see what routes Virgin cancels

That’s because Virgin Australis operate it. Based off what I’m seeing on that map, if more than one airline does the route it defaults to Virgin Australia

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I truly feel bad for those 750 people that there jobs are going to be cut

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I seen it on the TV, I hope those over 700 people find another job in the aviation industry.

Good point. They also have a joint venture covering the route.

Additionally, Hawaiian’s HNL-BNE flight isn’t listed

It looks like from the Wiki, “Hawaiian Says G’day to Brisbane, Adding Second Australian Gateway” (Press release). Hawaiian Airlines. June 19, 2012.

Wiki link to Hawaiian’s newsroom doesn’t work anymore
The executive traveler link shows the route had an added frequency, so it’s definitely been flying since 2014.

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