Qantas has cut international flights by about 90 per cent until the end of May as travel restrictions are put in place to halt the spread of coronavirus.

In a statement, the arline announced it was increasing the 23 per cent reduction for the fourth quarter of FY20 announced last week in a reflection of "the demand impact of severe quarantine requirements on people’s ability to travel overseas".

There is also further cuts to domestic capacity, which will be reduced by around 60 per cent, instead of the 5 per cent that was previously announced.

This represents the grounding of around 150 aircraft, including almost all of the Group’s wide-body fleet.

Qantas cuts - Update

• Total Group International capacity will be cut by around 90 per cent until at least the end of May 2020. .
• Total Group Domestic capacity will be cut by around 60 per cent until at least the end of May 2020. 
• This represents the grounding of around 150 aircraft, including almost all of the Group’s wide-body fleet.
• Previously announced cuts in place from end-May through to mid-September remain in place and are likely to be increased, depending on demand.

According to Qantas, previously announced cuts in place from end-May through to mid-September remain in place and are likely to be increased, depending on demand.

In the past couple of days, the Group has issued a wide-ranging booking waiver for customers wanting to suspend their travel plans.

Customers with existing bookings on any domestic or international flight until 31 May 2020, who no longer wish to travel, can cancel their flight and retain the value of the booking as a travel credit voucher. This needs to be processed by 31 March 2020.

Customers who make a new domestic or international booking and later decide they no longer wish to travel, can cancel their flight and retain the value of the booking as a Qantas travel credit or Jetstar travel voucher. This applies to bookings made from 10 March 2020 until 31 March 2020 for travel before 31 May 2020.

Qantas Group  said the decline in demand and resulting cuts to flying mean that the Qantas Group is confronted with a "significant labour surplus" across its operations, with travel demand unlikely to rebound for "weeks or possibly months".

"The mpact of this will be felt across the entire workforce of 30,000 people," the statement said.

"The Qantas Group is working to manage this impact as much as possible, including through the use of paid and unpaid leave.

"This will be in addition to measures already announced, including three months of no pay for the CEO and Chairman, significant pay cuts for Group Executive Management and Board members, and cancelling of annual bonuses and an off-market buy back."

Customes who wish to cancel their flight but retain the value of their booking should visit Qantas.com or Jetstar.com and select 'Manage My Booking'.

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