Norwegian is cancelling about 3,000 flights right up until mid-June adhering to a drop in demand from customers from the coronavirus outbreak.
That is about 15pc of the airline’s total capacity for this period of time.
The enterprise has also set a number of other actions in area, which includes temporary layoffs of a “significant share of its workforce”.
Afflicted consumers will be educated about cancellations.
Main executive Jacob Schram said: “Unfortunately, cancellations will have an impact on a significant share of our colleagues at Norwegian. We have initiated formal consultations with our unions about temporary layoffs for flying crew users as well as personnel on the ground and in the places of work.”
He additional: “This is a vital time for the aviation industry, which includes us at Norwegian. We persuade the authorities to promptly implement actions to imminently lower the financial burden on the airways in get to secure important infrastructure and positions.”
The Telegraph documented on Sunday that Arrowstreet Funds, a $106bn (£81bn) hedge fund launched by Uk-born Harvard professor John Campbell, is among traders betting Norwegian will be the next airline to fall short.
A number of airways have slashed capacity to and from Italy in the wake of the nationwide lockdown declared on Monday.
Ryanair will suspend all flights right up until April eight, though British Airways has also stopped flying to Italy.
EasyJet proceeds to function a small number of flights to the region.