Mayor Kevin Mack said the carrier's new owner US private equity company Bain Capital had indicated there would be a small return.

"Based on the deed of company arrangement proposed by Bain Capital that was accepted at the creditors' meeting last Friday, we are expecting a return in the order of 13 per cent to nine per cent," Cr Mack said.

The Border Mail has previously been told the council was left with a $300,000 debt when Virgin went into administration earlier this year.

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Based on that figure, ratepayers can expect to see $27,000 returned to the city at worst and $39,000 at best.

Albury Council was previously stung in 2018 with airline JetGo collapsing and owing the city $250,000.

Virgin stated on Wednesday it would no longer fly between Albury and Sydney, after having suspended that service in March upon the outbreak of COVID-19.

Cr Mack was dismayed.

"We're very disappointed that Virgin Australia has decided to withdraw from the Albury-Wodonga region but will continue to liaise with the airline on the potential for Albury services to ultimately resume when economic conditions improve," Cr Mack said.

Member for Albury Justin Clancy noted it was a commercial decision, with the remade Virgin no longer flying turboprops and having cited the Sydney-Albury route as underperforming.

Qantas and Regional Express remain on the route and Mr Clancy hopes airfares stay competitive.

"It's important we retain Rex and Qantas in that regard," he said.

"This community will rebound strongly (from COVID) and I expect demand will increase off the back of that."

Virgin began Albury-Sydney jet flights in 2008 when it was known as Virgin Blue.