Air New Zealand placed itself into a trading halt on Monday amid announcement on further reducing its long haul capacity by 85 percent.

Air New Zealand will be reducing 85 percent of its long haul network over the coming months and will operate a minimal schedule to allow New Zealanders to return and to keep trade corridors with Asia and North America open, said the company in a statement.

Flights between Auckland and Chicago, San Francisco, Houston, Buenos Aires, Vancouver, Tokyo Narita, Honolulu, Denpasar and Taipei will be suspended from March 30 to June 30. The airliner is also suspending its London-Los Angeles service until June 30. Its Tasman and Pacific Island network capacity will be significantly reduced between April and June.

Domestic flights operated by Air NZ in New Zealand will also be reduced by around 30 percent in April and May, although no route will be suspended.

As a result of the capacity reduction, cost review and redundancies are being considered by the company. Its board of directors will also take a 15 percent pay cut until the end of this calendar year.

Tough travel restrictions have been imposed by the New Zealand government from the weekend to protect the country from COVID-19. The measures are expected to further affect the economy.

According to the new travel rules announced, all travellers will have to self-isolate on their arrival to New Zealand, apart from those coming from the Pacific Islands. All passenger cruise ships are also being asked not to come to New Zealand until June 30. New Zealanders are also encouraged to avoid all non-essential travel overseas. Strict new health measures will be used at the New Zealand border for people departing to the Pacific countries.

There are currently eight confirmed cases of COVID-19 in New Zealand. 

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