Paul Scurrah

Former DP World Australia boss Paul Scurrah has been tapped as the new chief executive of Virgin Australia.

Virgin Australia expects to report a full-year underlying earnings loss of at least $35.6 million and has warned that weaker domestic demand could push that out further.

Virgin Australia says it will cut 750 corporate and head office positions as part of a restructure after posting a "disappointing" full-year loss of $349.1 million.

Virgin Australia is slashing its Tigerair fleet and cutting back on flights to rein in costs as the coronavirus cruels demand for leisure destinations and its budget airline's routes.

Virgin Australia has cut more flights, reduced executives' fees, and will seek relief from government charges as it joins rivals in attempting to soften the impact of the COVID-19 spread.

Australia has upgraded its international travel advice to the highest level, with all citizens being told not to travel overseas because of coronavirus. It comes as Virgin Australia suspended all international travel for more than two months.

Virgin Australia has stood down about 8,000 of its 10,000 workers until at least the end of May and further slashed domestic flight capacity in the wake of the coronavirus border restrictions.

The nation still has a second airline - for now. But Virgin Australia has been told in no uncertain terms that it will have to save itself.

Australian airline Regional Express (Rex) has been guaranteed at least one return service per week to most of its 59 destinations under the federal government’s regional airline support program.

Around 3,000 jobs will go at Virgin Australia under a trimmed-down vision of the carrier, which has been hit by turmoil in the aviation market caused by the coronavirus pandemic.

Virgin Australia boss Paul Scurrah will step down within weeks once the airline's sale to US private equity group Bain Capital is completed.