# Virgin Australia says high staff illness rates hampering capacity, lifting fares
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-09-14
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Virgin Australia Facing Capacity Challenges Due to Illness
Meta Description: Virgin Australia facing capacity constraints due to high illness rates among staff, leading to higher ticket prices. CEO optimistic for return to normal by
URL: https://financedigest.com/virgin-australia-says-high-staff-illness-rates-hampering-capacity-lifting-fareshtml

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By Jamie Freed

SYDNEY (Reuters) – Virgin Australia has been unable to provide enough domestic capacity to meet demand, which is tracking above 2019 levels because of high illness rates among staff, its chief executive said on Wednesday.

“It is people capacity, not aircraft capacity,” Virgin Chief Executive Jayne Hrdlicka said of the problems at a CAPA Centre for Aviation conference. “Hopefully by Christmastime it is a bit more back to normal.”

Capacity constraints made it “inevitable” that ticket [prices remain a bit higher](https://www.financedigest.com/vhs-tapes-selling-for-46000-higher-than-original-price.html "VHS tapes selling for 46,000% higher than original price") than normal for a while, she said.

Total Australian domestic capacity is running at about 86% of 2019 levels, according to data from CAPA and OAG, with Qantas Airways Ltd and Virgin [scaling back](https://www.financedigest.com/mifid-ii-why-you-should-not-scale-back-your-implementation-efforts.html "MIFID II: WHY YOU SHOULD NOT SCALE BACK YOUR IMPLEMENTATION EFFORTS") capacity in recent months to help cover higher fuel prices and improve reliability.

Those moves have pushed up fares, [Australia’s competition regulator](https://www.financedigest.com/australia-financial-crimes-regulator-opens-investigation-into-britains-entain.html "Australia financial crimes regulator opens investigation into Britain’s Entain") said in a report last week. It found average discount economy fares across the market rose 56% between April and August, [reaching their highest point since](https://www.financedigest.com/soccer-arsenal-reach-womens-champions-league-semis-for-first-time-since-2013.html "Soccer-Arsenal reach Women’s Champions League semis for first time since 2013") late 2020.

Virgin, like Qantas, has [faced a rise in flight delays and cancellations amid](https://www.financedigest.com/analysis-rocket-startups-face-adapt-or-die-moment-amid-investment-drought.html "Analysis-Rocket startups face adapt-or-die moment amid investment drought") high crew illness rates and a shortage of airport workers, though it has not come under as intense public scrutiny as the national carrier.

What [none of us fully factored](https://www.financedigest.com/3-factors-to-plan-for-in-2017-a-year-like-none-other.html "3 Factors to Plan for in 2017, A Year Like None Other") was the strain that puts on a business when you go so long partly dormant and you go to high mode and it is sustainably high,” Hrdlicka said.

Virgin has reduced the number of [flights so that it would have more crew](https://www.financedigest.com/former-astronaut-cunningham-member-of-first-crewed-apollo-flight-dies-at-age-90.html "Former astronaut Cunningham, member of first crewed Apollo flight, dies at age 90") available to fill in when absenteeism is higher than planned, improving its cancellation rate to about 2% now from 7.8% in July, she said.

The airline is seeing strong bookings for December and January despite higher [inflation and interest rates](https://www.financedigest.com/uk-inflation-rate-unexpectedly-rises-to-10-4-in-february.html "UK inflation rate unexpectedly rises to 10.4% in February") lifting the cost of living for consumers, Virgin Chief Strategy and Transformation Officer Alistair Hartley said.

(Reporting by Jamie Freed; Editing by Tom Hogue and Gerry Doyle)


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