It’s not just a Virgin thing, the market has softened dramatically for all airlines compared to expectations.
Passengers are reluctant to book because of the high chance of contracting Covid at the moment and the need to cancel plans.
Employers are reluctant to send employees interstate because of Covid fears so business travel is very light ( and the time of year of course)
And of course the airlines are having significant crewing disruptions, therefore only using available crew on higher yield routes not the long thin ones…it’s smart business.
We aren’t out of this crisis yet, I think the southern winter will once again define how 2022 turns out.