The carrier said in a statement Tuesday that the recapitalization plan will be deployed over the next 18 months and has the support of shareholders, including Delta Air Lines (DAL), new investors and existing creditors.

Under the plan, existing shareholders will contribute £600 million ($750.6 million), including £200 million ($250 million) from Virgin Group, founded by billionaire Branson.

US hedge fund Davidson Kempner is providing an additional £150 million ($188 million) in secured financing and creditors have agreed to defer repayments worth £450 million ($562.5 million).

"Few could have predicted the scale of the Covid-19 crisis we have witnessed and undoubtedly, the last six months have been the toughest we have faced in our 36-year history," Virgin Atlantic CEO Shai Weiss said in a statement.

"We have taken painful measures, but we have accomplished what many thought impossible," he added.