Virgin Atlantic will cut about 600 jobs, close to 8% of the workforce, as demand for flights plummet.
The UK long-haul airline, controlled by Richard Branson, is cutting capacity by 7% in the coming winter season.
Chief executive Steve Ridgway 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.”
The business first considered the move to cut hundreds of jobs in February this year.