Indonesian low cost carrier Lion Air is set to furlough about one third of its workforce.
Up to 8,000 employees could be furloughed, it said.
The company is operating only about 15% of its normal pre-Covid capacity, which is normally more than 1,000 flights a day.
Lion Air Group, operates multiple airline brands including Wings Air, Batik Air, and Lion Air.
"The decision was taken to maintain the business and company’s sustainability, streamline company operations, reduce costs and restructure the organization," the airline in a statement.
Indonesia is going through its worst wave of Covid infections which reached more than 50,000 cases a day at its height.
In an effort to suppress mobility the government mandated at least one Covid jab for long distance domestic travel, which has severely impacted airlines.
