Virgin Australia says it will slash capacity on its domestic and international routes, as the airline confirmed one of its cabin crew has the coronavirus.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
Chief executive Paul Scurrah said more tough decisions could lie ahead for the airline, as demand sinks amid the coronavirus crisis.
But he said the airline was not in any danger of folding.
"We have taken strong action to mitigate the risks of coronavirus today," he said on Friday.
"However, if further hard decisions are required, we will make those hard decisions."
He said health authorities are tracing passengers who came into contact with a cabin crew member who tested positive for COVID-19 after returning from overseas.
But Mr Scurrah wouldn't reveal which flight or flights are of concern, and cited the woman's privacy in refusing to say if she had been on a Gold Coast to Sydney flight.
"We are not confirming the flight this cabin crew was on.... It is a matter of privacy."
Virgin Australia will cut domestic capacity by five per cent in the second half of the financial year ending June. It will also reduce its international capacity by eight per cent.
Domestic services to be cut are mainly in markets that have multiple daily runs.
Internationally, daily services between Brisbane and Tokyo's Haneda airport will fall to three times a week from March 29 until May 3.
Daily services from Sydney to Los Angeles will drop to five times per week from early May to early June, and services to New Zealand will also be cut further.
Services from Auckland to Tonga and Rarotonga in the Cook Islands will also cease in May and July respectively.
Friday's international changes follow the group's recent withdrawal of its Hong Kong services.
Mr Scurrah said the group was not in peril but there was no doubt market conditions were challenging.
"We remain in a strong position from a cash perspective and we are well-positioned to weather the storm," he said.
In a statement timed to coincide with Mr Scurrah's press conference, the airline said it was suspending earnings guidance as a result of ongoing uncertainty around the coronavirus situation.
"The group currently has a cash position in excess of $1 billion, with no significant debt maturities until October 2021 and no new aircraft deliveries until July 2021," it said.
It also said it was seeking relief on government charges as part of a cost-saving push that also includes a temporary freeze on all external recruitment.
Australian Associated Press
