A Virgin Australia flight en route to Melbourne has made an emergency landing in Queenstown after its engine caught fire.

The Boeing 737-800 plane departed Queenstown Airport at 5.50pm, bound for Melbourne.

Shortly after take-off it suffered a bird strike, causing the engine to burst into flames.

The plane made an emergency landing at Invercargill Airport, where fire crews were ready to respond. 

Witnesses on the ground reported hearing a loud bang with sparks and flames seen coming from the side of the plane.

A spokesperson for Virgin Australia said: “Virgin Australia can now confirm that all passengers have disembarked VA148, which landed safely at New Zealand’s Invercargill Airport following a possible bird-strike after departing from Queenstown Airport.

At this time, we are not aware of any physical injuries to guests or crew. Emergency services personnel are on the ground at Invercargill Airport.

Our efforts are now focused on providing support for our guests and crew, as well as transporting and accommodating guests in Invercargill this evening and arranging for their earliest onward travel to Australia"

67  passengers were on board the Boeing 737-800, as well as six cabin crew.

A passenger on board posted to X that there were “several bird strikes” as the plane departed from Queenstown.

"Greetings from Invercargill! Mood is calm in the cabin, a tad shaken but on the ground, as fire crews inspect the plane. Can confirm it was a bird strike on the way out," a passenger posted on X. 

The flight landed safely at Invercargill Airport at 7pm local time.  (SkyNews)