United Airlines Holdings Inc said on Tuesday it was temporarily, but significantly, reducing daily flying in and out of Los Angeles and San Francisco airports to better match demand that has dropped due to the new coronavirus.

Talks between U.S. airlines and the Treasury Department over how to award US$25 billion in cash grants earmarked for payroll assistance due to the coronavirus outbreak were set to continue into the evening Tuesday, people briefed on the matter said.

Correlation between Aviation Operation and Epidemic (as of April 5)

Airlines around the world are cancelling hundreds of thousands of flights as travelers either opt not to travel or are outright banned due to COVID-19 pandemic. More passenger airlines are helping fill the severe shortage in freight capacity by turning their aircraft into cargo-only airplanes to haul critical medical supplies, foodstuffs and other economically essential goods.

COVID-19 brings unprecedented challenges to business and operation of airlines. At present, nearly a thousand airlines around the world are facing serious crises such as suspensions, layoffs, operational difficulties and even bankruptcy.

Airports could lose about US$ 76 billion for full year 2020, while airlines suffer potential revenue losses of US$ 90 to 118 billion in the first half of the year, according to the International Civil Aviation Organization (ICAO) , which has released its latest report providing estimates of COVID-19's economic impact on civil aviation.

Korean Air Lines Co Ltd will suspend flights to Washington, D.C. starting April 13 through to the end of May due to the coronavirus crisis, a company spokesperson said on Wednesday.

Two-thirds of Lufthansa's global staff will work reduced hours after the German airline grounded much of its fleet due to the coronavirus pandemic, Lufthansa said on Wednesday.

Emirates will operate all cargo services from Dubai International Airport from Wednesday, temporarily suspending operations at Dubai's Al Maktoum airport, the airline said on its website.

Defense contractor Israel Aerospace Industries (IAI) and holding group IES Holdings are partnering to create a facility for airlines to park airplanes grounded during the coronavirus outbreak near Israel's second-largest airport.