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(LONDON) — EasyJet says it is grounding its entire fleet of aircraft amid a collapse in demand due to the COVID-19 crisis.

The Luton-based carrier has parked all 344 of its planes, removing a significant cost as it copes with the impact of the virus.

EasyJet also says it has a strong balance sheet and is in "ongoing discussions with liquidity providers.'' The budget carrier also announced it has reached an agreement with the Unite union on furlough arrangements for its cabin crew.

The announcement comes as Scottish regional airline Loganair said it expects to ask for a government bailout.

Britain's government has so far demurred from creating a rescue package for aviation but has said it is ready for negotiations with individual firms once they had "exhausted other options."