The flight will operate on a daily basis and will serve as a useful link between the New South Wales capital and the tropical island destination, which serves as a gateway to the Whitsundays.
Brett Godfrey, Virgin Blue's chief executive, said that he expects the route to "see sufficient demand".
"We are hopeful the new direct flight will entice even more visitors to experience the wonder of the Whitsundays," he commented.
Mr Godfrey added that Hamilton Island has "long been a popular choice" among both local and international travellers.
The decision to launch the flight was taken after an analysis of the demand for the airline's connecting flights via its existing route to Hamilton Island from Brisbane.
Virgin Blue, which is Australia's second-largest airline, was founded by Sir Richard Branson's Virgin Group.
It was launched in the summer of 2000 and currently flies to 27 destinations.
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