Virgin Australia’s Chief Executive Dave Emerson has unveiled ambitious expansion plans that could mark the airline’s return to long-haul international operations. The revelation came during Friday’s half-year financial results announcement, where Emerson outlined a strategic two-year evaluation period for potential re-entry into the competitive long-haul market.
The airline’s current partnership with Qatar Airways, operating flights to Doha using Qatar aircraft and crew, serves as an experimental testing ground. Virgin will meticulously analyze the economic performance of these code-shared routes over the next 24 months before deciding whether to deploy its own aircraft on international routes.
Emerson emphasized the methodical approach during discussions with financial analysts: ‘Our Qatar partnership provides valuable market intelligence. We’ll assess operational economics, capital return potential, and shareholder value creation before making any fleet investment decisions.’
The financial results revealed a complex picture: while underlying earnings grew by 11.7% in the latter half of 2025, actual profits declined by 27.9% to $341 million. This decrease primarily resulted from the exhaustion of pandemic-era tax credits that had previously bolstered financial performance.
Despite profit pressures, consumer demand remains robust. Emerson noted that travel continues to be a spending priority for Australians, with the airline’s Velocity loyalty program emerging as a significant growth driver, particularly through financial services products.
The CEO simultaneously highlighted persistent industry challenges, including above-inflation cost increases in airport charges and aircraft maintenance. He warned that without vigilant cost management, aviation affordability for Australian consumers could become compromised.
The Qatar partnership currently enables Virgin to offer connections to approximately 170 destinations across Africa, Europe, and the Middle East via Doha. Qatar Airways maintains a 25% ownership stake in Virgin Australia, strengthening the strategic relationship between the two carriers.