Virgin Atlantic said on Jul. 1 that it will reduce capacity over the winter by 7 percent to battle a "bleak" outlook for the airline industry, meaning it will need to reduce staff by up to about 600 people.

The company, controlled by Richard Branson, said it will suspend daily flights between London and Chicago, along with one of its two daily services between London and Hong Kong for the 2009/2010 winter season.

"The outlook for the industry is as bleak as ever and all airlines are having to shrink their businesses. The fittest will survive and be in a stronger position when the economy grows," Chief Executive Steve Ridgway said in a statement.

Virgin, the arch-rival of British Airways, added it would try to keep the number of compulsory redundancies down.