Australia's second-largest airline has informed all employees that they will be rehired by December.
Virgin Australia said it requires additional seats to satisfy projected demand as a result of growing vaccination rates and open borders.
The airline has signed letters of intent to acquire seven additional Boeing 737-800 aircraft, signaling optimism about a strong recovery in travel one year after emerging from voluntary administration.
Virgin Australia said the letters of intent will provide it with a fleet of 84 737 NGs, just one short of the 85 it operated prior to entering voluntary administration last year and returning many of its planes to lessors.
Virgin Australia, which is currently owned by U.S. private equity firm Bain Capital, competes against Qantas Airways and Regional Express Holdings in a domestic market that is recovering.
The announcement that was made Thursday marks the carrier's third fleet expansion in the year since it emerged from administration. It stated in April that it would acquire 10 more 737s and nine other aircraft in August.
"This fleet expansion demonstrates our confidence in our business and the industry as a whole," Virgin Australia Chief Executive Jayne Hrdlicka said in a statement.
"Vaccination rates are increasing, borders are opening, and demand has returned," she said in quotes by Reuters.
The airline stated that all employees would return to work next month and that it would recruit for an additional 600 positions across the company. Numerous staff were placed on unpaid leave because of a lack of demand.
Qantas will also reinstate all personnel by the end of next month, at a time when the airline has seen an increase in bookings as governments ease their borders.
"We are really optimistic about travel resuming once borders are fully opened. We have made the most of the tranquil period in the industry and are well advanced on all fronts of our transformation strategy," Hrdlicka said.
"We fully expect to continue growing in lockstep with demand to maintain approximately 33% of the domestic market," she added.
Virgin Australia has revealed plans to extend its 737 fleet by almost 45% in the last year since its relaunch, from 58 to 84 planes, including the additional seven aircraft announced Thursday.
Meanwhile, two additional A320s were recently added to VARA, the group's resource operation in Western Australia, bringing VARA's total A320 fleet to seven, in addition to 11 Fokker F100 aircraft.
