Qantas will slash international flights by 90 per cent in a fresh round of coronavirus-related cuts on par with grounding 150 aircraft.
Both Qantas and Jetstar on Tuesday announced the additional and much larger reductions in their domestic and international flying schedules as travel bans intensify.
The national carrier’s total international capacity will now be cut by 90 per cent from the end of March to at least the end of May, up from a 23 per cent fourth quarter reduction announced last week.
Group domestic capacity will be cut by 60 per cent until at least the end of May – up from 5.0 per cent.
The measures come after government announced at the weekend international travellers to Australia are required to self-isolate for 14 days upon arrival.
The route-by-route detail of the changes across Qantas and Jetstar’s schedule is currently being worked through and will be announced in coming days.
Some domestic passenger aircraft will be used for freight-only flights to replace lost capacity from regular scheduled services.
Qantas’ fleet of freighters will continue to be fully utilised.
Airlines around the world are reeling as containment measures tighten in an attempt to halt the spread of the virus, with companies slashing flight schedules, freezing executives’ pay and seeking government aid as border restrictions tighten.
Air New Zealand also announced on Tuesday it would cut 13 routes to Australia and will run just 20 per cent of regular trans-Tasman capacity in a major overhaul of services.
Air New Zealand will take off from the capital, Wellington, and Christchurch, for Australia just twice a week; to Sydney.
It is not ruling out further cuts.
Virgin Australia on Friday suspended full-year earnings guidance as it also flagged further reductions in its Los Angeles, Japan and trans-Tasman services, as well as announcing the exit of Auckland services to and from Tonga and the Cook Islands.
Qantas said its previously announced flight cuts in place from the end of May to mid-September remain in place.
They are likely to be increased, depending on demand, which it expects to be subdued for “weeks or possibly months”.
Qantas also flagged the “precipitous decline” in demand and resulting cuts meant it was confronted with a significant labour surplus.
The company said it was working to manage the impact on its 30,000-strong workforce as much as possible, including through the use of paid and unpaid leave.
Qantas had already announced a three-month pay freeze for chief executive Alan Joyce and chairman Richard Goyder, significant pay cuts for executive management and board members, the cancelling of annual bonuses, and an off-market buyback.
Qantas on Sunday announced that customers with new and existing bookings on domestic and international flights would be given the option to cancel and receive travel credit.
The changes are available for Qantas, Jetstar and QantasLink flights and apply until March 31 for travel until May 31.
AAP