The service is expected to launch within 12 months, subject to regulatory approval, Virgin Australia Group chief executive Jayne Hrdlicka announced on March 7.

Small cats and dogs would be allowed to travel in an approved pet carrier under the seat in front of their owner on specific domestic routes, in a limited number of designated rows.

"Overwhelmingly, our guests tell us they want to travel with their pets," Ms Hrdlicka said.

"It's something that commonly happens overseas and is proven to work well."

Ms Hrdlicka said it was good news for pet-friendly accommodation providers with travellers more easily able to bring their furry friends around the country.

"Almost 70 per cent of Australian households have a pet so this announcement is really significant for a large proportion of the country," she said.

The airline surveyed its Facebook followers in 2021 with 85 per cent of respondents in favour of pets in cabin flights.

Melbourne Airport chief executive Lorie Argus said significant efforts had been made to provide relief areas for assistance animals, which could also be used by pets travelling with Virgin.

Otherwise pets would be required to remain in their carriers while in the airport terminal.

"We expect the pets in cabin concept will prove a popular offering and we look forward to working with Virgin Australia to make it a reality," Ms Argus said.

The new service would not affect arrangements for assistance animals or the transport of pets in cargo.

While the service would be a first for Australia, the practice is normal among North American airlines for domestic flights such as United Airlines and Air Canada.

Details on the available routes for pets in cabin flights and the cost to travellers is yet to be announced.