Budget airline Easyjet today said that it would cancel a number of flights to Italy as it warned of a “significant softening of demand” across its short-haul network as the coronavirus outbreak continued to impact global airlines.

The firm said it would continue monitor the situation and adapting its flying program to support demand.

Read more: British Airways owner IAG says coronavirus impact impossible to predict

Shares in the airline fell five per cent as markets opened.

The airline said it was too early to determine what the impact of the outbreak will be on its outlook for the year and guidance for both the airline and holidays business.

“We continue to monitor the situation carefully and will update the market in due course,” it said.

In the meantime Easyjet will focus on cutting costs across its business, including trimming spending in administrative areas and discretionary spend and a freeze in recruitment and pay.

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It added that it plans to reallocate aircraft for the summer in order to maximise revenue opportunities from any market recovery.

Easyjet’s update came as British Airways-owner IAG today said that it was “not possible” to give an accurate forecast for its full year profit as the coronavirus outbreak continued to disrupt the airline group’s operations.

Airlines have been amongst the businesses worst hit by the coronavirus outbreak, which has spooked passengers and led to the cancellation of services worldwide.

Read more: Global aviation to lose $30bn as a result of coronavirus outbreak

Last week global aviation body the International Air Transport Association (IATA) said that the coronavirus outbreak will cost the world’s airlines a combined $29.3bn in revenue, a reduction of five per cent on December’s estimates.

The vast majority of the cost – $27.8bn – will be borne by carriers based in the Asia-Pacific, with Chinese domestic airlines losing $12.8bn alone.