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Virgin America Trims Flights, Labor Cost on Slower Winter

Virgin America Inc., the low-fare airline partly owned by Richard Branson, will trim capacity by 3 percent in the first quarter and is offering voluntary short-term leave to employees to cut costs, citing a weaker outlook.

The company, which reported a wider net loss for the second quarter, is seeking voluntary reductions through short-term leave and flex scheduling ahead of an anticipated drop in traffic in the first three months of 2013, Chief Executive Officer David Cush wrote in a letter to employees last week. The Burlingame, California-based company, which employs about 2,600, hasn’t said how many workers are involved.