News: QAN UPDATE 1-Virgin Australia to cut capacity by 25% as COVID-19 cases rise

• Travel demand down, staff being required to isolate
• Will cut frequencies, suspend 10 routes temporarily
• Australia experiencing Omicron-driven surge in cases

(Adds CEO comments, details of Australia COVID-19 cases)

SYDNEY, Jan 10 (Reuters) - Virgin Australia said on Monday it would reduce capacity across its network by around 25% for the rest of January and for February due to reduced travel demand and staff being required to isolate as COVID-19 case numbers rise in Australia.

The airline, which competes against Qantas Airways Ltd (QAN) , said it would cut some flight frequencies and suspend 10 routes temporarily.

Australia on Monday surpassed reuters.com/business/healthcare-pharmaceuticals/australia-covid- 19-infections-hit-1-million-omicron-drives-record-surge-2022-01- 09 1 million COVID-19 cases, with more than half of them recorded in the past week, as the Omicron variant ripped through most of the country driving up hospitalisation numbers and putting a strain on supply chains.

Virgin Australia Chief Executive Jayne Hrdlicka said the surge in COVID-19 cases had affected customer confidence.

"Virgin Australia remains focused on growing its network and consumer reach and will resume services as soon travel demand improves," she said in a statement.

The airline said in November it would add seven more Boeing Co BA.N 737 NG planes to its fleet, nearly restoring it to pre-pandemic levels, to help meet a goal of obtaining a one-third share of Australia's domestic travel market.

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Australia COVID-19 infections hit 1 million as Omicron drives 

record surge

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