Coronavirus: Qantas flags more network cuts as Air NZ slashes flights

Qantas is set to make further cuts to international and domestic flights amid new travel restrictions.

Qantas is set to cut more flights, as Air NZ slashed services. Picture: Getty Images)

Qantas has flagged further significant cuts to its international and domestic network due to the “major impact on travel demand” of new restrictions announced over the weekend.

It came as Air New Zealand has slashed its international network down to just a handful of flights to “bring Kiwis home” and keep trade corridors open amid unprecedented new travel restrictions.

Within 24 hours, New Zealand and Australia have announced all arrivals from overseas would be required to self-isolate for 14 days to minimise the spread of coronavirus.

A Qantas spokesman said more detail about the revised flying schedule would be announced as soon as possible.

In the meantime, passengers with travel booked in the next two months would be eligible for a credit voucher if they wished to cancel those bookings.

Air New Zealand’s 85 per cent cut to overseas flights came after Prime Minister Jacinda Ardern announced all arrivals into New Zealand would be required to self-isolate for two weeks, to minimise the spread of coronavirus.

Among the cuts to be enforced by the end of the month, were the suspension of flights between Auckland and Chicago, San Francisco, Houston, Buenos Aires, Vancouver, Tokyo, Honolulu, Denpasar and Taipei.

London-Los Angeles would be suspended from March 20 through to June 30.

Further capacity cuts were expected on trans-Tasman routes and the domestic network with details to be announced later this week.

Air New Zealand CEO Greg Foran said airlines were facing an unprecedented challenge but they were better placed than most to navigate through it.

“The resilience of our people is exceptional and I am consistently amazed by their dedication and passion for our customers,” said Mr Foran.

“We are a nimble airline with a lean cost base, strong balance sheet, good cash reserves, an outstanding brand and a team going above and beyond every day. We are also in discussion with government at this time.”

He conceded redundancies would be necessary for permanent positions and discussions with unions were underway.

“We are now accepting that for the coming months at least, Air New Zealand will be a smaller airline requiring fewer resources, including people,” Mr Foran said.

“We have deployed a range of measures, such as leave without pay and asking those with excess leave to take it but these only go so far. We are working on redeployment opportunities for some of our staff within the airline and also to support other organisations.”

A trading halt announced by Air New Zealand would remain in place today.

In response to the Australian government’s tougher measures requiring all people arriving from overseas to self-isolate, Qantas said it would allow passengers with bookings to cancel without penalty and get a travel credit voucher for future use.

Cancellations for travel up to May 31 must be made by the end of March, and the airline urged people not to call its contact centre but to go online and use the “manage bookings” option.

Virgin Australia was still assessing the impact of the changes on Sunday and was expected to update its network in coming days.

Passengers travelling from the US and the UK overnight only learned of the requirement to self-isolate for two weeks upon arriving in Australia.

Those with domestic connections were allowed to take them provided they were healthy.