A conjecture of Jackson from 1981 states that every $d$-regular oriented graph on $n$ vertices with $n\leq 4d+1$ is Hamiltonian. We prove this conjecture for sufficiently large $n$. In fact we prove a more general result that for all $α>0$, there exists $n_0=n_0(α)$ such that every $d$-regular digraph on $n\geq n_0$ vertices with $d \geq αn $ can be covered by at most $n/(d+1)$ vertex-disjoint cycles, and moreover that if $G$ is an oriented graph, then at most $n/(2d+1)$ cycles suffice.