Lufthansa is evaluating a temporary grounding of its entire Airbus A380 fleet as part of capacity cuts in response to the coronavirus outbreak.

The Star Alliance airline says it may reduce capacity by up to 50% over the coming weeks – more than previously planned – as a result of a “drastic decline” in bookings amid “exceptional circumstances”.

Capacity cuts will be made at all passenger airlines across the group, it indicates.

Lufthansa has 14 A380s, stationed in Frankfurt and Munich.

The aim of any temporary grounding would be “to reduce the financial consequences of the slump in demand”, says the carrier.

“The company is in talks with its operating partners and trade unions in order to avoid dismissals… by means of various part-time models,” adds Lufthansa, which in February introduced a recruitment freeze and multiple other cost-saving measures, including voluntary unpaid leave.

Lufthansa has for a limited period waived change fees on existing and future bookings in a bid to stoke demand by offering passengers flexibility.