(Updates with share price move, detail)
COPENHAGEN, March 23 (Reuters) - Icelandair on Monday said it would cut 240 jobs and reduce pay in response to the coronavirus crisis that has grounded more than 80% of its flights.
The company’s share price fell by 27% to its lowest since March 2010. At 1027 GMT, shares were 24% lower at 3.01 Icelandic crowns ($0.0212) each.
To try to absorb the effect of the coronavirus outbreak on its business, the airline said it would cut 240 jobs out of a total workforce of 4,715 and temporarily move 92% of its remaining staff to part-time employment.
“These measures limit the number of layoffs and positively impact the company’s cash flow in the short-term,” Icelandair said in a statement.
Icelandair, whose largest market is for flights between Europe and North America via Iceland, has been heavily affected by U.S. travel restrictions, implemented earlier this month.
The airline, which has 21 destinations in North America, is operating only 14% of its planned flights, and expects that to decline further in the coming weeks, it said in a statement.
It had around 490 trips scheduled to and from the United States in the month starting March 14.
Remaining full-time staff will temporarily have their salary cut by 20%, it said. Executive management will have their pay reduced by 25% and the chief executive and board of directors by 30%.
$1 = 141.9100 Icelandic Crowns Reporting by Jacob Gronholt-Pedersen, additional reporting by Nikolaj Skydsgaard, editing by Louise Heavens and Barbara Lewis