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Japan Airlines Co. plans to reduce this year’s winter bonus for employees by 80% from the previous year’s level due to the firm’s sharply deteriorating earnings traced to a plunge in travel demand amid the novel coronavirus pandemic.

JAL notified its labor union of the reduction on Thursday. The airline’s winter bonus will be equivalent to half a month’s wages, down from 2.5 months a year before.

The firm’s summer bonus this year was equivalent to a month’s wages, half of that in the previous year. The size of reduction will be expanded for the winter bonus due to the harsh business environment.

The total bonuses at the company for fiscal 2020 are expected to be equivalent to 1.5 months of wages as a result, the lowest level since fiscal 2010, when no bonus was paid following its bankruptcy.

Meanwhile, special allowances of ¥100,000 per person will be given out to assist workers’ living.

The company logged a consolidated net loss of ¥161.226 billion in the April-September first half of fiscal 2020, and is in a dire need to substantially cut costs, including personnel expenses.

Domestic rival All Nippon Airways Co. plans to skip this year’s winter bonus amid the tough business environment blamed on the coronavirus crisis.

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