The company admitted periods of leave without pay for some employees would be “inevitable” but opened other leave avenues “in order to preserve as many jobs as possible longer term”, including leave in advance, and early access to long service leave.

The national carrier earlier this week cut its international capacity by 90 per cent and on Thursday took it to 100 per cent from the end of March until at least the end of May as travel restrictions tighten.

The announcement comes after rival Virgin Australia said it would halt international travel from the end of March to June 14 in the face of escalating government measures to contain the virus spread.

International travellers to Australia are required to self-isolate for 14 days upon arrival.

Prime Minister Scott Morrison has also urged Australians not to travel overseas, while the government has also handed the sector a $715 million lifeline to help it through the coronavirus pandemic.

Qantas said both it and budget brand Jetstar will continue to fly to almost all its Australian domestic and regional destinations but less frequently, as previously flagged.

“Essential domestic, regional and freight connections will be maintained as much as possible,” the airline said in a release.

Two-thirds of the Qantas and Jetstar workforce will be stood down at least until the end of May while senior executives and board members will now receive no salary until at least the end of this financial year, joining chief executive Alan Joyce and chairman Richard Goyder in taking no pay.

Annual management bonuses have also been cancelled.

Qantas said affected employees will be able to draw down on annual and long service leave, while additional support will be introduced, including leave at half-pay and early access to long service leave.

Employees with low leave balances will be able to access up to four weeks leave in advance of earning.

“Unfortunately, periods of leave without pay for some employees are inevitable,” the airline said.

Shareholders expecting a fully franked 13.5 cent interim dividend on April 9 will have to wait until September 1.

They will also have to wait for the airline’s already cancelled off-market buyback.

Thursday’s announcement means more than 150 aircraft will be grounded, including all of Qantas’ A380s, 747s and B787-9s and Jetstar’s B787-8s.

Discussions are progressing with airports and government about parking for these aircraft.

Qantas’ fleet of freighters will continue to be fully utilised.

Some domestic passenger aircraft will also be used for freight-only flights to replace lost capacity from regular scheduled services.

There is no impact on Qantas Loyalty’s operations as a result of the new announcement.

Qantas shares have lost nearly two-thirds in value so far in 2020 and were worth $2.53 before Thursday’s open.

– AAP