British Airways owner IAG's moves to slash flights amid extensions of quarantines and travel restrictions sent it tumbling into a e1.3 billion loss in the past three months but the group said it had enough cash to survive.
Across its airlines, which include Iberia and Aer Lingus, it now plans for the current quarter of the year to be operating only 30% of the flights it ran a year ago.
It cited the failures of governments to adopt airport testing before departures and air corridors, such as those the industry had hoped for between Heathrow and New York.
That cut will mean IAG no longer reaches breakeven on its cashflows during the fourth quarter.
However, it stressed its liquidity remained strong, at e6.6 billion, following major capital raises and job cuts.
In the third quarter of its financial year, revenue declined 83% to e1.2 billion, leading to a e1.3 billion loss against e1.4 billion profit a year ago.
Shares in IAG fell 4% after its announcement, hitting just 96.14p. The group started the year at 256p amid boomtimes for airlines.
The group is now run by chief executive Luis Gallego after Willie Walsh left last month. Walsh had delayed his departure to ensure some continuity at the group as it headed into the Covid crisis.
Last week, Gallego replaced British Airways chief executive Alex Cruz with Aer Lingus chief Sean Doyle. Cruz oversaw severe job cuts at the airline but was accredited with having made the airline more competitive against rivals such as easyJet and Ryanair on short haul.
Key to BA's recovery will be a resumption of flying on the Transatlantic routes where it traditionally makes most of its profit.
Airlines have been increasingly frustrated at government's slowness to adopt Covid screening at airports, which has meant travellers face quarantines that make much flying pointless.
