Air New Zealand reduces long haul capacity by 85%, in trading halt

    Air New Zealand further reduced (16-Mar-2020) capacity across its network as a result of the impact of coronavirus on travel demand, as well as placing a trading halt on 16-Mar-2020 to allow it time to more fully assess the operational and financial impacts of global travel restrictions. Details include:

    • Reducing long haul capacity by 85% ‘over the coming months’;
    • Operate a minimal schedule to allow New Zealanders to return home and keep trade corridors open;
    • Suspend services between Auckland and San Francisco, Houston, Buenos Aires, Vancouver, Tokyo Narita, Honolulu, Denpasar and Taipei between 30-Mar-2020 and 30-Jun-2020;
    • Suspend London-Los Angeles from 20-Mar-2020 to 30-Jun-2020;
    • Tasman and Pacific Islands network to be significantly reduce between Apr-2020 and Jun-2020;
    • Reduce domestic capacity by 30% with no routes suspended;

    As a result of the downturn in travel Air New Zealand continues to review its cost base and will need to start the process of redundancies for permanent positions acknowledging the important role partnering with unions has in this process.