The Qantas Group has announced further cuts to its international flying and a range of cost-cutting measures following the spread of coronavirus across Europe and North America.

A day after Air New Zealand announced it was reducing capacity across its networks, the Australian airline has declared it will use smaller aircraft and reduce the frequency of flights to "maintain overall connectivity".

The biggest reductions remain focussed on Asia (now down 31 per cent compared with the same period last year), while capacity reductions to the United States (down 19 per cent), the UK (down 17 per cent) and Trans-Tasman (down 10 per cent) will also be made in line with forward booking trends.

At a glance: 

• Qantas has announced it is reducing its services in response to the coronavirus.
• The Australian airline has declared it will use smaller aircraft and reduce the frequency of flights to "maintain overall connectivity".
• As part of cost-cutting measures, for the remainder of FY20:
  
  - The Qantas Chairman will take no fees.
  
  - Group CEO Alan Joyce will take no salary.
  
  - Qantas Board will take a 30 per cent reduction in fees.
  
  - Group Executive Management will take a 30 per cent pay cut.
  
  - There will be a freeze of all non-essential recruitment and consultancy work.
  
  - All Qantas and Jetstar employees will be asked to take paid or unpaid leave in light of reduced flying activity.

Customers who are affected by the changes will be contacted in the coming week.

These additional changes will bring the total international capacity reduction for Qantas and Jetstar from 5 per cent to 23 per cent versus the same time last year and extend these cuts until mid-September 2020.

In announcing the changes, Qantas Group CEO Alan Joyce said he expected lower demand to continue "for the next several months".

"Rather than taking a piecemeal approach we’re cutting capacity out to mid-September," he said.

"This improves our ability to reduce costs as well as giving more certainty to the market, customers and our people.

“We retain the flexibility to cut further or to put capacity back in as this situation develops.

“We’re in a good position to ride this out, but we need to take steps to maintain this strength."

In addition to cutting capacity, a number of cost reduction measures will be triggered across the Qantas Group, including cutting management bonuses; a 30 per cent reduction in Qantas Board fees; a 30 per cent pay cut for Group Executive Management; no salary for the Group CEO; freezing all non-essential recruitment and consultancy work; and asking all Qantas and Jetstar employees to take paid or unpaid leave in light of reduced flying activity.

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