At least 70% of Korean Air’s 19,000 staff will take a six-month furlough as the carrier reacts to the coronavirus pandemic.
The leave of absence between April 16 to October 15 will apply to employees that work in South Korea, and all except essential staff will take leave in principle.
The action is being taken in response to “deteriorating business circumstances”.
Airlines in Korea have seen a 96% drop in international passengers and 324 aircraft out of 374 remain grounded, lobby group Korea Civil Aviation Association said this month.
A Korean Air spokeswoman told Reuters employees on leave will be paid a percentage of their wages, but declined to disclose the level or the exact number of staff affected.
The airline’s labour union agreed to the layoffs as part of “pain-sharing” as part of stabilisation efforts.
Korean Air also said it will attempt to further strengthen the company’s financial position, including by injecting additional capital and a 50% cut in executives’ salaries.
The airline’s chief executive said in a company memo last month that the coronavirus outbreak could threaten its survival if the situation lengthens.