The End of Cheap Virgin Australia Business Fares?

Over the past couple of years, Virgin Australia has been offering some very attractive Business Class airfares on many domestic routes. Unfortunately, it seems that all good things must come to an end.

Most of Virgin Australia’s Business Class airfares are still considerably lower than Qantas. But in recent weeks, the gap has become a bit narrower.

Until recently, for example, Virgin Australia Business Class fares were available on the Melbourne-Canberra route from as low as $259 when booking in advance. Virgin’s Business Class fares on this route now start from $349 one-way when booking at least 45 days in advance, or $399 when booking less than 45 days before departure.

On the Brisbane-Mackay route, around a year ago, Virgin had Business Class airfares available from as low as $209 one-way. Today, the price is at least $399 when booking at least 45 days out or $499 otherwise.

On the Sydney-Gold Coast route, fares have increased to at least $349 one-way when booking in advance, or $399 closer to departure (previously starting from $299).

Last year, for a while, you could even score Melbourne-Darwin tickets in Business Class from $499 one-way. The cheapest available fare is now $785.

And on the Sydney-Perth route, the cheapest one-way Business Class fare is now $1,505 (or $1,599 if booking within 45 days of departure). Last year, Virgin was selling the same flights from around $1,199 one-way.

Why has Virgin increased its airfares?

Only Virgin Australia’s revenue management team will know the full answer to this question, but there are a few likely reasons.

An obvious reason is inflation. It’s normal for prices to increase over time – although some of Virgin’s recent fare increases have gone beyond just covering higher costs.

Another possible reason is supply and demand. Perhaps the old prices were simply too low, and with only 8 Business Class seats available per flight, Virgin was selling too many.

A more likely reason is that Rex also recently increased its Business Class fares.

Since Rex launched Boeing 737 flights between major cities in March 2021, Virgin Australia has been matching Rex’s prices on all of the routes where they compete. This included Rex’s cheap Business Class fares.

In March 2022, when Rex announced it was increasing most of its fares by $10 due to spiralling fuel costs, Virgin also increased its fares on competing routes by $10. For example, Melbourne-Canberra Business fares increased at the time from $249 to $259 with both airlines.

Now, Rex has increased its Business fares much more substantially (e.g. to $349 on the Melbourne-Canberra route) and Virgin has followed almost immediately.

Many domestic flights have been full in recent months, and Rex has begun to better monetise its empty Business Class seats by launching a “Bid Up” upgrade platform. So, it’s no real surprise that airlines have sought to increase fares to help them soar back to profitability after the pandemic.

Saving money on Virgin Australia Business Class in 2023

You can still save money on Virgin Australia flights by using a discount code. For example, ITX13 currently gets you 10% off domestic Virgin Australia Business Class airfares. You need to book at least 21 days in advance to use this promo code and some blackout dates do apply.

With this promo code, for example, the cost of a Sydney-Perth flight in Virgin Australia Business Class reduces to as low as $1,357 one-way. And Canberra-Melbourne flights start from $318.

Of course, you can also upgrade from Economy to Business Class by redeeming Velocity points or bidding for an upgrade, which can be very good value. Velocity Platinum members also continue to receive four annual complimentary Business upgrades, although these can only be used when booking an Economy Flex ticket.

If there is a Business Reward seat available on the flight you wish to book, you could of course also redeem Velocity points for a ticket.

You can also redeem points or miles with Virgin’s partner airlines for a seat. Redeeming Etihad Guest miles for Virgin Australia flights in Business can be particularly excellent value, especially when buying Etihad Guest miles at a discount.

Upgrades and reward seats are subject to availability.

Matt Graham

The editor of Australian Frequent Flyer, Matt's passion for travel has taken him to over 70 countries… with the help of frequent flyer points, of course!
Matt's favourite destinations (so far) are Germany, Brazil & Kazakhstan. His interests include economics, aviation & foreign languages, and he has a soft spot for good food and red wine.

You can connect with Matt by posting on the Australian Frequent Flyer community forum and tagging @AFF Editor.