By Natalie Sherman Business reporter, New York
The German airline said it would de-commission more than 40 aircraft, warning that it does not expect demand to return for "years".
It said it would also reduce fleets in its other businesses, which include Austrian Airlines, Swiss and Eurowings.
Lufthansa's moves could be a hint of more drastic steps to come elsewhere.
"You can't understate the disaster that's unfolding right now in the world's airline industry. There's no sugar coating it," said Richard Aboulafia,
Parked aircraftWhile he said that travel demand has bounced back after other disasters and recessions, until the health risks
"For the next year," he said "to two years, there's going to be a lot of aircraft retirements, a lot of parked aircraft and a lot of utilization reductions."
Global airlines group IATA has said it expects airline passenger revenues to drop by more than 40% this year and warned that more than 25 million jobs in aviation and related industries are at risk.
Lufthansa has already idled more than 90% of its fleet since the virus outbreak and held talks with the German government about aid. But offloading aircraft means the "first permanent capacity reduction", it said.
"It will take months until the global travel restrictions are completely lifted and years until
The firm said it will enter talks with unions and its
"The decisions taken today will affect almost all flight operations" it said.
Mr Aboulafia said in part the crisis is allowing Lufthansa to accelerate plans to dump older, less fuel-efficient aircraft, several of which Lufthansa said were already scheduled to be sold.
It is a good opportunity to "prepare for rebuilding it with better aircraft one day when demand comes back," Mr Aboulafia said.