No one is scared of anything except getting sick. The turmoil over the last month, and into the next few is purely because people are actually SICK, therefore disruptions to schedules, travel plans, transport services and supply are all because people are on SICK leave. It has nothing to do with fear, the same would be happening if everyone got flu at the same time. Or are you saying we should all go to work and travel while sick?
In a few months it will settle down and we'll be back to the normal grind worrying about your mortgage, crime and waistline.
Domestic travel in Australia always dies off significantly from January to about June, Virgin has never turned a profit in this half. QF and Rex get through on regular business and commuters, Virgin has always been as with Jetstar heavily discretionary travel, so they make most of their cash from September school holidays to Christmas/New Years.