Fastjet's shuttle and charter business, Federal Airlines, will cut 55% of its full-time employees due to the plunge in travel demand caused by the COVID-19 pandemic, the South African budget airliner said on Tuesday.

"FedAir has seen a dramatic downturn in forward ticket sales and reservations and the majority of passengers that were booked have deferred their travel into the fourth quarter of 2020 or the first half of 2021," the airliner said.