Air New Zealand is axing its Auckland to Buenos Aires and Los Angeles to London routes as the slump in international demand and Government restrictions on travel continue to take its toll on the airline.
The national carrier also said it was postponing the start of its Auckland to New York service from October 29, 2020 to late 2021 at the earliest.
The airline said in a statement this morning, along with 95 per cent of its international flying, the Buenos Aires and Los Angeles-London routes had been suspended through to June 30 amid the Covid-19 pandemic.
Last year, Air New Zealand announced its plan to exit the Los Angeles-London route in October 2020 and in March brought forward the closure of its London cabin crew base.
The airline’s looking to cut up to 3,500 jobs after suffering a drastic cut in demand due to the pandemic. (Source: Other)
Air New Zealand Chief Networks, Strategy and Alliances Officer Nick Judd said demand for international travel has been tracking at about five per cent of pre-Covid-19 levels into June.
"It's deeply disappointing to be in this position. Our people have worked tenaciously over the years to build these markets and excitement was growing for our non-stop New York flight.
"However, the effects of Covid-19 continue to bite," he said, adding, "we expect most countries to take a cautious approach to international travel in the next year and we have to be pragmatic.
"Government travel restrictions will continue for some time and demand for our Los Angeles-London service is unlikely to recover before our planned exit in October. Argentina has been challenging before the pandemic and we don’t expect this market to recover quickly."
Air New Zealand is currently operating a limited international network through to June 30 to keep air links open for essential travel and cargo movement on key trade routes.
Total capacity has been reduced to 95 per cent of pre-Covid-19 levels and demand will be reviewed on a route-by-route basis.
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