Cathay Pacific Airways will cut around 90% of its flights to mainland China over the next two months.
It comes as Hong Kong reported its first coronavirus fatality – only the second death outside mainland China so far.
The airline says it is a temporary adjustment and will announce ‘further measures’ in the coming days.
"These cuts are temporary for now and driven by the commercial and operational realities at the current time, as well as the projections in short-term demand," said CEO Augustus Tang said in a circular to employees.
The airline is also cutting flights elsewhere, which will result in a total 30% cut in global capacity.
Passenger traffic has plunged 50% in recent days, according to an internal briefing note by Mark Hoey, the general manager of operations.
In a filing to the HK stock exchange, the airline remained upbeat.
"Cathay Pacific’s current financial position remains strong and will enable it, despite the current difficult trading conditions, to maintain the quality of its products and services."
There are fears the airline may have to furlough some workers if the coronavirus outbreak continues to spread.
It may also have to ground planes, which is a measure Cathay took during the Sars epidemic in 2003.
