Virgin Australia outlines demand impacts and mitigation strategies for domestic services

25 February, 2020

Virgin Australia reported (26-Feb-2020) the following coronavirus demand impacts and mitigation strategies for its domestic services:

  • Domestic demand impact:
    • Potential AUD15 million (USD9.9 million) impact on Tigerair Australia, with a potential AUD35 million (USD23.1 million) to AUD40 million (USD26.4 million) impact on Virgin Australia Domestic;
    • Impact of international Chinese inbound cancellations, with domestic demand impacted by bushfires and low GDP growth;
  • Domestic mitigation strategies:
    • Fast tracking exit of Tigerair Australia A320 fleet to facilitate all Boeing 737 fleet by Oct-2020, with capacity reductions into FY2021;
    • Reduced short term capacity into significantly impacted domestic markets, including Cairns;
    • Continued focus on cost out initiatives. [more - original PR]