Qantas Airways Ltd is axing at least 20 per cent of its workforce and intends to raise up to A$1.9 billion ($1.3 billion) of equity under a sweeping cost-saving plan prompted by the coronavirus pandemic.

Reuters reported that the Australian airline also said it will ground 100 aircraft for up to 12 months and retire its remaining Boeing 747 fleet immediately, six months ahead of schedule, given travel restrictions imposed by the global health crisis.

“We have to position ourselves for several years when revenue will be much lower,” Qantas Chief Executive Alan Joyce said of the three-year plan. “And this means becoming a much smaller airline in the short term.”