Etihad ends partnership with Virgin Australia

A major international airline has announced it will terminate its partnership with Virgin Australia, meaning passengers can no longer earn miles.

Etihad has announced it will end its codeshare agreement with Virgin Australia as of next year.

The Abu Dhabi-based carrier said the move reflected a divergence in the “strategic direction of the respective airlines”.

As of June 1, 2025, passengers will no longer be able to book Virgin Australia-operated flights through Etihad’s booking channels – and members can no longer earn Guest Miles on the Aussie carriers’ flights.

Etihad customers with an existing booking with a Virgin Australia-operated segment will experience no changes to their itineraries.

“Etihad Airways remains dedicated to serving Australia, as it has since 2007,” the airline’s statement issued Monday said.

Etihad announced it will terminate its partnership with Virgin Australia.

“For Summer 2025, the airline will increase its flights to Sydney and Melbourne, offering Australian guests an exceptional flying experience, loyalty benefits, and connections to its expanding global network.”

The move comes about six weeks after Qatar Airways announced its intent to acquire a 25 per cent stake in Virgin Australia, subject to government approval.

If given the green light, Qatar will become Virgin’s exclusive interline, codeshare and loyalty partner headquartered in the Middle East or Turkey, and Virgin Australia will become Qatar’s exclusive interline, codeshare and loyalty partner headquartered in Australia, according to the Australian Competition and Consumer Commission (ACCC).

.As of June 1 next year, the Abu Dhabi-based airline will no longer codeshare with the Aussie airline.

The ACCC anticipates a final determination on the alliance in March 2025.

The move has the potential to fast-track Virgin’s international network.

Currently, Virgin’s international routes include Japan, Bali, New Zealand, Fiji, Vanuatu and Samoa.

However, if the 25 per cent stake is approved by the ACCC and Foreign Investment Review Board, it will see Virgin launch flights from Brisbane, Melbourne, Perth and Sydney to Doha, in the Middle East.

It means Etihad members will no longer be able to earn Guest Miles on Virgin Australia flights.

Virgin’s domestic services will also be improved by reportedly allowing the airline to lease Qatar’s twin-aisle B777s for routes in Australia.

Virgin currently carries 31 per cent of Australia’s domestic traffic, with Qantas/Jetstar taking 62 per cent.

Flight Centre Travel Group managing director of Australia, James Kavanagh, told news.com.au an investment like this is “only going to make Virgin Australia stronger and more competitive which is good for the entire industry following a period of uncertainty”.

Mr Kavanagh said it would see both airlines realise access to greater efficiencies and synergies.

“(And) we expect this to benefit the end consumer and create interesting new options for travellers taking off domestically and internationally,” he added.

He said ultimately it should mean more routes, heightened competition and better prices for Aussies.