In August of 2018, Virgin converted 13 of its 737 MAX 8 orders for the larger MAX 10 variant. Deliveries of the MAX 10 were scheduled to begin in 2022, but were delayed till 2027, because of the grounding of the type in late 2019 and later the pandemic of 2020.

In 2019, the airline continued to reposition itself from a low-cost carrier into a full-service competitor to Qantas, investing heavily in widebody aircraft such as the Boeing 777 and Airbus A330, expanding long-haul routes to destinations including Los Angeles and Hong Kong, and introducing premium products.

The turning point came in April 2020, when the COVID-19 pandemic triggered a collapse in global air travel. Border closures and a sharp decline in passenger demand pushed Virgin Australia into voluntary administration, marking one of the most significant airline failures in Australian history. Unlike some competitors globally, the airline did not receive a government bailout, largely due to its foreign ownership structure. Instead, after a competitive bidding process, the US private equity firm Bain Capital acquired the airline in June 2020.

Following the acquisition, Bain initiated a sweeping restructuring program that fundamentally reshaped the airline’s business model. Branded informally as “Virgin Australia 2.0,” the strategy focused on simplifying operations and returning the airline to profitability. The airline retired its widebody fleet—including Boeing 777s and Airbus A330s—as well as regional ATR aircraft, and permanently shut down its low-cost subsidiary Tigerair Australia. The fleet was simplified to primarily Boeing 737 narrowbody aircraft.

Leadership changes accompanied this transformation. In late 2020, CEO Paul Scurrah stepped down and was replaced by Jayne Hrdlicka, who had previously held senior roles at Qantas. Under her leadership, Virgin Australia adopted a “value carrier” strategy—positioned between full-service and low-cost airlines.

Throughout 2021 and 2022, the airline focused on rebuilding its domestic network as Australia gradually reopened. International operations remained limited, but strategic partnerships became central to its global connectivity. A key development was the announcement in December 2021 of a new alliance with United Airlines, replacing its long-standing partnership with Delta Air Lines.

As travel demand rebounded after the pandemic, Virgin Australia cautiously expanded selected short-haul international routes, particularly to leisure destinations in the Asia-Pacific region. Routes such as Gold Coast–Denpasar (Bali) and Cairns–Tokyo were introduced or relaunched between 2022 and 2023.

Virgin Australia officially introduced a new type of aircraft into its fleet on June 28, 2023, with the delivery of its first Boeing 737-8 MAX. The aircraft, registered as VH-8IA and affectionately named "Monkey Mia," touched down in Brisbane. The inaugural flight took place between Cairns and Tokyo (Haneda) in July 2023. The 737-8 MAX reduces carbon emissions by at least 15% and is 40% quieter than the older 737-800 NG models. During the next years the airline would continue to take on deliveries of the Max type with the -10 version delayed till 2027.

In 2024, the airline placed an order for Embraer E190-E2 jets, with deliveries beginning in 2025. These aircraft were intended to replace aging Fokker 100 jets and expand services in Western Australia’s lucrative fly-in fly-out (FIFO) mining sector, demonstrating a renewed focus on profitable niche markets.

In 2024, regulatory approval was granted for a renewed codeshare partnership with Air New Zealand on trans-Tasman routes, strengthening connectivity between Australia and New Zealand. Meanwhile, Qatar Airways agreed to acquire a 25% stake in Virgin Australia, a deal approved in early 2025. This investment signalled a potential pathway back into long-haul international markets through partnership rather than direct fleet expansion.

In parallel, the airline prepared for a return to public markets. After five years under private ownership, Virgin Australia launched an initial public offering in 2025, reflecting improved financial performance and market confidence. Leadership transitions continued during this phase, with CEO Jayne Hrdlicka announcing her departure in 2024 and Dave Emerson taking over in 2025, marking the next stage of the airline’s evolution.

Virgin Australia welcomed the improved Embraer E190-E2 to its fleet on September 6, 2025, arriving at its new home base in Perth two days after. Following a series of proving flights, the E2 officially entered commercial service on October 27, 2025.

Looking toward the future, Virgin Australia’s strategy appears focused on disciplined growth rather than aggressive expansion. Fleet plans centre on incremental modernization, particularly through the introduction of Embraer E190-E2 aircraft for regional operations and continued reliance on Boeing 737s MAX for mainline services. The airline has not signalled a return to operating its own widebody long-haul fleet in the near term; instead, it is expected to expand international connectivity through partnerships, especially with Qatar Airways and United Airlines.

Route development is likely to continue prioritizing high-demand leisure destinations in Asia and the Pacific, alongside strengthening core domestic routes linking major Australian cities such as Sydney, Melbourne, and Brisbane.