Korean Air (KE, Seoul Incheon) has warned in a note to employees that the Covid-19 coronavirus outbreak may threaten its survival. The carrier has been forced to cut more than 80% of its international capacity as travel restrictions are imposed around the world on arrivals from South Korea to curb the spread of the virus.

Woo Kee-hong, Korean Air’s president, told employees in the internal memo that the airline could not predict how long the crisis would drag on, comparing the situation to an 18% capacity cut made during the 1997-98 Asian financial crisis.

“We can easily imagine the severity of the crisis we are facing in comparison. And what is more daunting is that the situation can get worse at any time, and we cannot even predict how long it will last,” he said in the memo, according to Reuters.

“If the situation continues for a longer period, we may reach the threshold where we cannot guarantee the company’s survival,” he added.

Woo said that Korean Air had grounded about 100 of its 145 passenger aircraft, including its ten A380-800s, adding that it had also taken steps to defer investments, cut operational expenses, and encourage employees to take voluntary leave.

The purpose of the internal memo was “to encourage employees and ask for understanding in overcoming the crisis together,” a Korean Air spokesman assured the BBC. “We have gone through numerous difficulties for the past 51 years, and I’m confident that we will overcome this crisis together.”