Air New Zealand has cancelled more than 1000 flights up until the end of the year due to continued border uncertainty between New Zealand and Australia.
Chief customer and sales officer Leanne Geraghty said the "difficult decision" was made as it appeared unlikely quarantine-free travel between the two countries would resume this year.
"This will be particularly tough news for families and friends who were hoping to catch up over Christmas," Geraghty said in a statement on Monday evening.
"I appreciate how difficult this news will be, but our hands are tied until border restrictions ease, and we receive further clarity from the New Zealand Government."
The airline estimates around 1000 flights will need to be cancelled, with somewhere in the region of 20,000 customers expected to be impacted.
"We appreciate this latest news means some customers will have to wait longer before reuniting with loved ones. We're continuing to do everything we can to get them home safely as quickly as possible," Geraghty said.
Air New Zealand's schedule for 2022 remains in place until it receives an update from the New Zealand Government.
The airline will continue to operate a reduced schedule of flights into Sydney and Melbourne and 'red fights' from Australia into New Zealand for those with MIQ spots.
Impacted customers can opt to hold their fare in credit for travel at another date or receive a refund if they have purchased a refundable ticket.