In a significant shift within Australia’s aviation sector, Virgin Australia has overtaken Qantas Airways to become the nation’s largest domestic airline by market share. As of December 2024, Virgin Australia holds a 35% share of the domestic market, edging out Qantas’ 34.6%, according to the Australian Competition and Consumer Commission (ACCC).
This development marks the first time since early 2022 that Qantas has been unseated from the top position. A pivotal factor in Virgin Australia’s ascent was the collapse of Regional Express (Rex) in mid-2024, which enabled Virgin to expand its fleet by acquiring additional Boeing 737 aircraft, thereby increasing its capacity on key routes.
Beyond fleet expansion, Virgin Australia’s commitment to operational excellence has contributed to its rise. In December 2024, the airline reported a cancellation rate of just 0.6%, significantly lower than Qantas’ 2.7%, highlighting Virgin’s reliability and appeal to passengers.
This shift in market dynamics occurs amidst a backdrop of increased competition and a robust recovery in the Australian aviation industry following the COVID-19 pandemic. Virgin Australia’s strategic initiatives and operational efficiency have positioned it favorably, suggesting a potential long-term impact on market leadership and offering consumers more choices in domestic air travel.
