Hong Kong based airline Cathay Pacific has asked all of its 27,000 employees to take three weeks of unpaid leave, as it tries to preserve cash amid the coronavirus outbreak.

Chief Executive Augustus Tang told Reuters the situation facing the company was now as severe as the 2009 financial crisis.

The carrier will also be be asking suppliers for price reductions, putting in place hiring freezes, postponing major projects and stopping all non-critical spending.

Cathay Pacific flights have already been hit by the months of civil unrest in Hong Kong, where protests have claimed the lives of over 500 people.

Now the airline plans to cut 30% of its capacity over the next 2 months and 90% of its routes to mainland China.

Staff have been told the unpaid leave is not compulsory, but are being encouraged to take it between March and June.

Markets responded positively to the news, with Cathay Pacific shares up 2.7% on Wednesday (February 5).