Wizz Air, the largest low-cost airline in Central and Eastern Europe, has said it will make 1,000 staff redundant - representing some 19% of its workforce.
As well as redundancies, additional employee furlough measures have been and will be taken "in the short term" as a result of the travel restrictions in place to try and limit the spread of coronavirus.
Wages were also being cut for the remaining workforce - with pilots, cabin crew and office staff losing an average 14% of their salaries for the whole of the year, while the chief executive, board of directors and all senior officers will lose 22% of theirs.
The news came as the airline announced traffic was down 34% year-on-year in March while it's currently operating at just 3% of its pre-coronavirus capacity - seeing a loss of more than ￡60 million between March and May.
Wizz Air has also been working with suppliers to reduce rates and improve payment terms. The airline confirmed it will gradually return 32 older leased aircraft by the end of F23 as existing lease contracts expire too.
Wizz Air chief executive József Váradi said:? "First and foremost, I would like to thank our people for their tremendous support to passengers and communities across all countries during these unprecedented times.
"They have risen to the challenges facing Wizz Air and the industry with grace and determination, especially when it comes to performing repatriation flights for citizens stranded by COVID-19 across the world and delivering key medical supplies to help our countries, communities of caregivers and their patients."
He added that the firm had taken action to "protect the position of the company" and is reviewing all its assets.
"We are also working to further improve our strategic, cost and cash position in the aftermath of this crisis to ensure we can deliver our long-term growth target," he said.
"The Company is expecting to deliver significant shareholder value, environmental benefits and employment opportunities in the years to come."