The planemaker is set to reduce its commercial airplanes workforce by around 5 per cent starting in December, with its plan to ramp up manufacturing of 737 MAX aircraft hampered by “slower than expected” wing production at its Renton factory.

In an announcement to the ASX on Tuesday, Virgin revealed that it now intends to take delivery of its first MAX 10 aircraft in June 2028, "with further deliveries scheduled for FY29". The airline had previously been eyeing delivery of its first MAX 10 in late 2027.

Like its rival Qantas, Virgin has revealed it intends to cut back on domestic capacity and increase airfares in order to stabilise operating costs and minimise damage to its balance sheet. The airline is expecting its fuel costs for the six months to December 2026 to exceed $700 million.

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In a fiery statement, the union demanded Qantas “keep its commitment” over assurances it said employees had received in August that there were “no plan to offshore any Australian jobs”, and said workers “deserved an honest explanation of what had changed since then”.

The Airbus A350-1000ULR, custom-designed and built for Qantas’ Project Sunrise initiative, is undergoing test flights ahead of the first planned aircraft delivery Down Under in April 2027.

Under the partnership, some roles will be offshored to Accenture’s teams in India, some will remain based in Australia, and others will “in time be transformed further with automation and AI”.

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