Virgin Australia (VAH) will set up a new Adelaide base for cabin crew, bringing about 80 jobs to South Australia.
Virgin Australia chief customer officer Mark Hassell says the move highlights Adelaide as an important market for the airline's domestic operations.
"Having a cabin crew base in Adelaide will create significant benefits for our business, giving us greater flexibility in scheduling flights and crew," he said.
Flights out of Adelaide have previously been serviced by cabin crew from other states.
Premier Jay Weatherill said the new jobs would be in addition to the 180 customer-service and ground crew already working for Virgin Australia in SA.
"Airlines play a significant part in our economy, bringing business and tourism to the state, Mr Weatherill said.
"Today's announcement by Virgin Australia shows that Adelaide is an important destination in its operations."