OSLO — Low-cost airline Norwegian Air Shuttle said on Tuesday it would cancel "approximately 3,000 flights" mid-March to mid-June representing 15 percent of its capacity for the period as the COVID-19 outbreak hits travel.

"The past week, Norwegian has experienced reduced demand on future bookings. The company will cancel about 3,000 flights to meet the change in demand," the company said in a statement.

"The cancellations represent approximately 15 percent of the total capacity for the period mid-March to mid-June," it added, saying the cancellations would affect the airline's entire network.

Feeling the financial strain of reduced demand, the company also said it would implement temporary layoffs of personnel and had "initiated formal consultations with our unions".

"This is a critical time for the aviation industry, including us at Norwegian," CEO Jacob Schram said in a statement, adding that they encouraged authorities to implement measures to reduce the financial burden on airlines.

The International Air Transport Association (IATA) last week estimated that losses in revenue for airlines due to the new coronavirus could range from $63 billion (55 billion euros) to $113 billion, depending on whether the spread of the virus was contained.

Norwegian, which has been in deficit for three years and is heavily indebted due to an ambitious expansion policy, especially in long-haul flights, is particularly vulnerable.

Last Thursday, the company withdrew its 2020 forecast, which predicted a return to profits, citing the new coronavirus epidemic.

In early afternoon trading on Tuesday, shares in Norwegian were down 5.8 percent on the Oslo Stock Exchange.

Meanwhile in neighboring Denmark, authorities on Tuesday banned all flights to heavily affected areas, such as parts of China, Iran and Italy, for two weeks.

The Danish government also urged people to avoid public transport during rush hours.

On Tuesday, Denmark had 158 confirmed cases of the new coronavirus, and Norway had 192. — AFP