Virgin Australia said it will offload its Bali flights from Melbourne, Adelaide and Perth to budget partner Tigerair next year.
Virgin has decided these popular holiday routes are better served by a no-frills carrier, as it looks to shed loss-making international routes.
Virgin Australia CEO John Borghetti said passengers on these routes overwhelmingly prefer low fares.
"Unfortunately for some of those markets, there will be no other choice," said Borghetti.
"In our view, Sydney and Brisbane still have a market for a premium carrier to Bali."
The change in carrier will take effect next March, and Virgin also plans to ditch its Perth to Phuket flight altogether from February as the market is ‘just not big enough’ Borghetti said.
The shake-up will also result in Virgin adding more flights on Trans-Tasman routes and to Samoa, Fiji and the Solomon Islands during peak season.
Borghetti said Virgin is on course to make a profit in the 2015/16 fiscal year as long as it continues to turnaround its loss making international division.
"As a result of the progress on our strategy to date, we are now on a positive trajectory and on track to significantly improve financial performance," he said.
