Virgin Australia plans to cut more domestic flights as travel restrictions

Virgin Australia said Monday it expected to make a material reduction in its domestic capacity after the Australian govt advised against non-essential domestic travel and some states tightened travel restrictions because of the coronavirus. The airline said more information would be provided in the coming days. Virgin said last week it would ground all international flights and cut its domestic capacity in half as travel demand plunges due to the coronavirus outbreak. Moody's Friday downgraded Virgin's credit rating to B3 from B2 and placed it on review for further downgrade. The ratings agency cited a sharp fall in passenger traffic that will result in significant negative free cash flow, a weakening liquidity profile and higher leverage in the financial year ending June 30. <br/>