Latin America's biggest airline Latam said Thursday it was canceling 30 percent of its international flights for a two-month period due to falling demand over the coronavirus scare.

The measure will apply mainly to flights from South America to Europe and the United States between April 1 and May 30, the company said.

The Chilean-Brazilian airline is facing "a complex and extraordinarily dynamic scenario" and needed to safeguard "long-term sustainability" for its 43,000 employees, Vice President Roberto Alvo said.

The company also said it would "suspend new investments, expenses and contracts," given coronavirus-related travel restrictions on its routes.

The International Air Transport Association (IATA) said last week the virus could cost airlines $113 billion in revenue this year.

Coronavirus