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Virgin Cancels All Domestic Flights Except One

Virgin Australia will operate just one flight each day for the foreseeable future, citing "government restrictions" and plummeting passenger numbers.

The carrier will run just a single Sydney-Melbourne return service daily, as well as cargo and charter flights.

"As a result of Government restrictions, less people are travelling and we have made changes to our schedules to reflect this," a Virgin Australia spokesperson told 10 News First.

"We continue to operate a daily service between Melbourne and Sydney, provide cargo transport locally and overseas, and operate charter flights including assisting the Government in bringing Australians home."

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Virgin Slashes Flights By 90 Percent, Thousands Of Workers Stood Down

Thousands of workers will be stood down for two months, as Virgin Australia cuts its domestic capacity by 90 percent.

Virgin Australia has also re-credited leave to staff forced to take time off when the coronavirus caused the airline to stand down thousands of its workers.

Image: AAP

It comes after the federal parliament passed the $1500 fortnightly wage subsidy, which is expected to help pay aviation workers caught in the economic storm.

Transport Workers' Union secretary Michael Kaine has welcomed Virgin's move and called on Qantas to match it.

"Qantas has recently mortgaged its planes and forced staff to bail it out from their leave balances," he said on Thursday.

"With the government stepping in to subsidise wages and backdating this to March 1, Qantas should pay this back. We appeal to Qantas to reconsider its stance."

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Airlines cannot afford to refund cancelled flights due to the coronavirus crisis, the head of the industry's representative body has declared.

Last month, Qantas stood down 20,000 staff or two-thirds of its workforce, giving them the option to take paid annual leave or unpaid time off work.

Qantas will this month start paying the JobKeeper wage subsidy early, weeks ahead of receiving the money from the tax office.

"The government has said in cases where employees have been stood down and elect to take paid annual leave, the JobKeeper payment will subsidise part of that income," a Qantas spokesman told AAP.

"That's exactly how we are applying the payment."

With AAP.