Hagerty made her off-Broadway debut in 1979, starring in Mutual Benefit Life at her brother's theater, The Production Company. In 1983 she appeared Off-Broadway at the Vandam Theatre in Shel Silverstein's 'Wild Life' directed by Art Wolff. It was an ensemble theatre piece co-starring Christopher Murney, W. H. Macy, Henderson Forsythe, Conard Fowkes, Jody Gelb, Howard Lee Sherman and Raynor Scheine. She continued appearing on stage, including starring in a Broadway version of The House of Blue Leaves. Her first film role was in All That Jazz, but her small part was cut out of the finished film. She was subsequently cast opposite Robert Hays in the parody film, Airplane! It was released in June 1980 and became the third-highest grossing comedy in box office history at that time, behind Smokey and the Bandit (1977) and National Lampoon's Animal House (1978). Airplane! was considered the first of the modern parody genre and established Hagerty as a noted comedic actress.
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