Airport managing director Stephen Byron said it was likely no one would be flying in Australia by the Christmas holidays as states and territories shut their borders.

It comes as the Queensland government barred any travel between the ACT and NSW to the sunshine state, declaring both jurisdictions as coronavirus hotspots.

Mr Byron said Queensland had become the latest state to restrict domestic travel from the national capital, despite the jurisdiction having no active cases.

"My concern is not so much with the Queensland government or Annastacia Palaszczuk, it's with the whole set up. Other states have started it and she's followed it," Mr Byron said.

"The key issue is it's not just Queensland but it's WA and SA and Tasmania, all of these states have put borders up against the ACT, and the ACT has no coronavirus.

"How much less coronavirus do these states like Tasmania need us to have?"

The bad news for Canberra Airport kept coming on Wednesday, after Virgin Australia announced it would cut 3000 jobs as part of a restructure under new owners Bain Capital, after the airline went into voluntary administration earlier this year.

Virgin said its fleet would be reduced to just its Boeing 737s, meaning the smaller ATR aircraft, which serviced the Sydney to Canberra route, will no longer fly.

Mr Byron sad the 737s would service the route, but with reduced frequency.

"It means that there'll be less competition with Qantas, and it's important for Virgin to service the national capital of this country as well as it can, and over time they'll evolve a plan to do that," Mr Byron said.

"We have a close relationship with Virgin Australia and we would be supportive of them to bring competition to all the routes out of Canberra."

Virgin also announced it would suspend international routes and scrap its budget carrier Tigerair.

Tigerair operated services to Melbourne and Brisbane from Canberra, with Canberra Airport originally seeking to lure more budget airlines to the capital.

"Tigerair and low-cost airlines are now the least of our worries," Mr Byron said.

"We now have no airlines and we have a shut down of domestic aviation."

The chief executive of the Australian Airports Association James Goodwin said Virgin's job losses highlighted the need for further support for the industry from the federal government.

"There are few industries hit harder by the pandemic than aviation and this is another blow for the sector," Mr Goodwin said.

"There is deep concern amongst the airport sector at the flow-on impact of the significant job losses and service reductions outlined by Virgin Australia."

Deputy Prime Minister Michael McCormack said the changes undergone by Virgin were part of a step towards a competitive and sustainable aviation industry.

With the carrier now focusing on domestic routes servicing mainly capital cities, Mr Goodwin said the move would make it more difficult for people living in regional areas.

"Airports are concerned Virgin Australia's withdrawal from long-haul international routes will push back the safe reopening of international air corridors, while the laying up of its short-haul regional fleet may further reduce the connectivity of regional Australia to our major cities," he said.

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Aviation expert Hans Mitterlechner said despite the job losses, Virgin's restructure was good for Australia's aviation industry going forward.

"It's very good that we have the guarantee of two airlines, it wouldn't be healthy for Qantas to have a monopoly on things," he said.

"Virgin was trying hard to be everything for everyone, and that's not easy, so some adjustments had to be made."