The collaboration will effective 1 June 2025, Etihad said.
They will part ways due to ‘a divergence in the strategic direction of the airlines.’
After the termination Etihad passengers will no longer be able to book Virgin Australia-operated flights through Etihad’s booking channels.
For Etihad customers with existing bookings that include a Virgin Australia-operated segment, there will be no changes to their itineraries.
Members will not earn Guest Miles on Virgin Australia-operated flights from 1 June, 2025 going forward.
Etihad Airways will continue serving Australia.
For next summer, the airline is increasing its flights to Sydney and Melbourne.
The decision to sever the partnership comes after rival Gulf carrier Qatar Airways announced a strategic investment in Virgin Australia .
A planned 25% stake purchase is still pending final approval by Australia’s Foreign Investment Review Board