Virgin Australia is approaching the business end of its search for a new chief executive, who will face the challenge of improving the carrier's financial performance while managing the demands of the larger airlines that control the company.

Virgin said in June that CEO John Borghetti would depart the airline by the end of 2019, following an eight year-stint in which he transformed it from the budget carrier Virgin Blue to a full-service rival to Qantas.

Virgin has said it will have a new CEO by the end of 2019, with some expecting a replacement to be announced early in the new year. Credit:File photo

Former Hawaiian Airlines boss Mark Dunkerley has emerged as a favourite for the top job from a wide field, according to airline sources, some of whom expected an announcement early in the new year.

Mr Dunkerley significantly improved Hawaiian's profitability and extended its network into Asia and Australia during his 13 years at helm of the American airline.