The airline said it wanted to allow time “to more fully assess the operational and financial impacts of global travel restrictions”.

As a result of the downturn in travel, Air New Zealand said it “continues to review” its cost base and would start the process of redundancies for permanent positions.

The carrier’s board of directors will also take a 15% pay cut until the end of this calendar year.

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

“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.”

Foran said the airline was “working constructively” with the heads of the four main unions representing more than 8,000 of its workforce to “ensure the right outcome for all staff”.

“These are unprecedented times that we are all having to navigate. And it is clear that if we don’t take all the appropriate measures to lower costs and to drive revenue, our airline won’t be in the best position to accelerate forward once we are through the worst of the impact of Covid-19,” he added.

On its long-haul network, Air New Zealand will be reducing its capacity by 85% over the coming months and will operate a minimal schedule to allow Kiwis to return home and to keep trade corridors with Asia and North America open.

Full details of this schedule will be advised in the coming days.

Among the long-haul network capacity reductions, the airline is suspending flights between Auckland and Chicago, San Francisco, Houston, Buenos Aires, Vancouver, Tokyo Narita, Honolulu, Denpasar and Taipei from 30 March to 30 June. 

It is also suspending its London-Los Angeles service from 20 March (ex-LA) and 21 March (ex-Heathrow) through to 30 June.

The Tasman and Pacific Island network capacity will be significantly reduced between April and June. 

Details of these schedule changes will be announced later this week.

On its domestic network, the carrier will reduce capacity by around 30% in April and May but no routes will be suspended.

Customers are advised they should not contact the airline unless they are due to fly within the next 48 hours or need immediate repatriation to New Zealand or their home country.

Foran said despite the capacity decrease, Air New Zealand was “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 also have supportive partners. We are also in discussions with the government at this time,” he added.