Brazilian carrier TAM, part of the LATAM airline group, plans to make big cuts in domestic capacity due to the worsening local economy.
The airline’s CEO Claudia Sender said cuts of up to 20% would be made and job losses are likely.
"TAM is taking this measure to face Brazil’s difficult economic situation," Sendersaid in a statement.
"It is therefore necessary to seek network adjustments, further boosting our competitiveness in the country, and preventing any harm to our passengers’ connectivity."
No routes would disappear altogether and job losses would not include operational flight crew members.
"We continue to believe in the return to growth of our country and this adjustment does not affect the long-term strategy," Ms Sender added.
TAM is the largest Brazilian airline by market share and size of fleet and was recently selected as one of the official sponsors of the 2016 Olympic and Paralympic Games.
The Brazilian Association of Air Companies recently said growth in the domestic air sector is flat and is forecast to rise no more than one percent this year.
