Qantas slashes international flights by 90pc

Qantas cutting 90 per cent of overseas flights due to the ‘single biggest shock aviation has ever experienced’.

Qantas is paring flights down to essentials. Picture: Getty Images

Qantas will cut 90 per cent of international flights and 60 per cent of domestic capacity until the end of May, in response to massive falls in travel demand due to the coronavirus.

In its most dramatic changes to network since the outbreak was confirmed in China, the national carrier will ground the equivalent of 150 aircraft, including almost all of its widebody fleet, made up of Boeing 747s, Airbus A380s, A330s and 787-9s.

A statement to the ASX on Tuesday said the 90 per cent cut to international capacity “reflected the demand impact of severe quarantine requirements on people’s ability to travel overseas”.

The 60 per cent cut to domestic capacity reflected the rapid decline in forward travel demand due to government containment measures, corporate travel bans and a general pullback from everyday activities across the community.

The statement acknowledged Qantas still played an essential role in transporting people and goods on domestic and international routes, and said some domestic flights would be freight-only.

Staff email

The announcement of extensive capacity cuts was followed by an email to staff from CEO Alan Joyce, assuring workers it was his goal to protect as many of the airline’s 30,000 jobs as possible.

“It’s now fair to call this the single biggest shock that global aviation has ever experienced,” Mr Joyce wrote on Tuesday.

“Both Qantas and Jetstar are faced with the need to radically increase the cuts already made to flying schedules.”

He said the new deeper cuts were a sign of how quickly the market had deteriorated.

“All these numbers are confronting and the reality behind them is just as stark,” said Mr Joyce.

“There will be significant hardship as we make our way through this and o

ut the other side - which could take a while.”

“It’s now fair to call this the single biggest shock that global aviation has ever experienced.”

A series of webinars would be run to explain how employees would be managed across the period, and Mr Joyce said they would also be talking to unions.

“Our goal is to protect as many jobs as possible and to make sure we remain strong enough to ride this out,” he said.

The precipitous decline in demand meant Qantas and low fares partner Jetstar were confronted with a major labour surplus across their operations, and there would be impacts for the 30,000-strong workforce.

“The Qantas Group is working to manage this impact as much as impossible, including through the use of paid and unpaid leave,” said the statement.

Further details are expected in coming days about route-by-route cuts and arrangements for employees.

On Monday CEO Alan Joye forewarned employees of the drastic cuts, saying there was “major hardship” ahead for Qantas and Jetstar.

Customers with flights between now and May 31, could cancel and get a travel voucher credit for future use. Passengers were urged to use the online “manage booking” facility rather than call the contact centre which was experiencing very high volumes of demand.

Air New Zealand has also announced further cuts, reducing trans-Tasman flights by 80 per cent with one service daily between Auckland and Sydney, and Auckland and Melbourne; five flights a week between Auckland and Brisbane and just two flights a week between Sydney and Wellington and Christchurch.