Virgin Australia chief executive Jayne Hrdlicka has urged cabin crew to accept a pay deal involving at least 15 per cent increases over three years, as the airline tries to avoid industrial action heading into the holiday season.

In a note to staff on Monday morning, Ms Hrdlicka acknowledged the “tension in various parts of the airline right now” after cabin crew covered by the Transport Workers Union and the Flight Attendants Association of Australia threatened industrial action.