Virgin Atlantic, the UK long-haul airline controlled by Sir Richard Branson, is cutting capacity by seven per cent in the coming winter season and is planning to axe around 600 jobs or close to eight per cent of the workforce.

Steve Ridgway, chief executive, said, ”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.”