Data firm Cirium on Tuesday estimated the number of aircraft placed in storage since January had climbed to 3,500 - up 1,000 from a day earlier - as more airlines ground planes.
That's in line with the earlier announcement of grounding worldwide flights.
Qantas and Virgin have called off all global routes and slashed domestic flights after Australia closed its frontiers to limit the spread of COVID-19. Starting from midnight of March 27, it would temporarily cease flights to 19 Australian destinations now operated by Virgin Australia.
Virgin's 90% reduction includes a temporary suspension of flights to 19 destinations in Australia from March 29 to 14 June 2020.More news: Major coral bleaching at Barrier Reef
Virgin Australia Group now plans, working with the country's government, to maintain only the "vital" domestic routes.
About 8,000 of the airline's 10,000 workers will be stood down until at least the end of May and domestic flight capacity will be slashed further in the wake of border restrictions. During this period, employees will be able to access accrued leave but for many, leave without pay "will be inevitable". The group has a fleet of 133 aircraft across the three airline brands, namely Virgin Australia, Virgin Australia Regional and Tigerair.
"From the end of this week, we will begin repositioning and grounding more than 125 aircraft in our fleet, suspending nearly all our domestic and worldwide flying until at least the middle of June", Scurrah is cited in the company's statement as saying.
"There has never been a travel environment in Australia as restricted as the one we see today and the extraordinary steps we've taken have been in response to the federal and state governments' latest travel advice", said Virgin Australia CEO and Managing Director Paul Scurrah in the statement.More news: India under total virus lockdown
Mr Scurrah also said budget carrier Tigerair will suspend all flights effective immediately.
"Virgin, another significant employer in Australia, is standing workers down and forcing them to shoulder the burden by taking their leave", said TWU National Secretary Michael Kaine in a statement to 10 daily on Wednesday.
The company said guests who are booked to travel between now and June 30 of this year could request a travel credit online through the website of Virgin Australia.More news: Fed chair Jerome Powell says 'we may well be in a recession'