Lufthansa to slash capacity by half as coronavirus hits bookings

German airline group Lufthansa will slash flight capacity across its fleet by half over the coming weeks because of the fallout from coronavirus, the company said on Friday, just days after announcing a 20% reduction.

"In recent days, the Lufthansa Group has been exposed to drastic declines in bookings and numerous flight cancellations due to the spread of the COVID-19 virus. All traffic areas are now affected," it said in a statement. The measures to reduce the financial fallout from the crisis come on top of planned cuts in personnel and material costs.

Lufthansa said on Wednesday it had cut its flight capacity in a move equivalent to grounding almost a fifth of its fleet, which includes Lufthansa planes, Swiss, Brussels and Austrian Airlines. Airlines across the globe have suspended flights or modified services in response to the outbreak.