Virgin Australia has taken the lead over flag carrier Qantas as Australia's dominant domestic airline, as reported by Pilotcenter.net News. The data released by the Australian Competition and Consumer Commission (ACCC) reveals that by the end of 2024, Virgin Australia had surpassed its larger competitor in terms of passengers carried solely on domestic flights within Australia throughout the 2024 calendar year. This marks a significant shift in the Australian airline industry dynamics, reflecting the first time since 2022 that Qantas has relinquished the top spot.

The ACCC report highlights that Virgin Australia secured a market share of 35%, slightly surpassing Qantas at 34.6%. Even though the margin was slim (0.4%), Virgin Australia's achievement underscores its growing dominance in the domestic market. The figures show a clear trajectory of success for Virgin Australia, with the carrier experiencing impressive growth in December 2024, recording a 15.8% increase in domestic passenger numbers compared to the same period in 2023.

In contrast, Qantas saw more modest growth at 3.2%, while its low-cost subsidiary Jetstar reported a 11.2% increase in passenger numbers for the year, concluding 2024 with a 29% market share. The average load factor for Australian domestic flights reached a record high of 90.4% in November 2024, showcasing the growing demand for air travel within the country.

Virgin Australia also led the way in load factor performance with an impressive 93.4%. The ACCC attributed Virgin Australia's success partly to the vacuum left by the collapse of regional carrier Rex in mid-2024. Despite some marginal benefits from the failure of budget carrier Bonza, the impact on Virgin Australia and Qantas was deemed minimal as Bonza mainly operated on routes not serviced by the two major airlines.

While the industry's cancellation rate improved to 1.8% in December 2024, on-time performance remained a challenge, with only a 74.7% on-time arrival rate. Virgin Australia stood out with only 0.6% of its flights being canceled in 2024, beating its competitors in service reliability.

The strong performance of Virgin Australia throughout 2024 has sparked speculation about a potential relisting on the Australian Stock Exchange by its owners, Bain Capital. Additionally, the ACCC announced plans to approve the proposed alliance between Virgin Australia and Qatar Airways. This strategic partnership will introduce 28 new weekly return services between Doha and major Australian cities, operated by both airlines using leased Qatar Airways Boeing 777-300ERs. The collaboration is poised to enhance connectivity and flight options for passengers traveling between Australia and Qatar's capital.