Qantas laid off 2,500 staff: Qantas says a lockdown in Sydney will cut 2,500 staff as it affects air travel across Australia.
The airline said the firefight – affecting pilots, crew and airport workers – would last at least two months.
The airline said it would pay staff until mid-August, after which they can apply for government support payments.
Since June, the latest Kovid outbreak has forced many Australian states to re-enforce sanctions.
Delta’s highly contagious nature has forced lockdowns in many cities and some state borders.
The situation in Sydney is extremely serious. Although it has been in lockdown since June 26, it is seeing 200 new infections every day.
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Almost all states have banned travelers from the largest city in Australia.
Qantas chief executive Alan Joyce said the latest Delta outbreak had canceled thousands of flights.
Between May and July, Qantas and Jetstar lost 60% of their domestic business, he said.
Travel bubble with New Zealand also stopped.
Mr Joyce said the airline could no longer keep 2,500 workers on its payroll, but described it as a temporary measure.
He said, “This is the last thing we want to do.”.
But he said “this time last year was very different, we had 20,000 employees standing by”.
Last year, Qantas had to lay off nearly 6,000 staff – a fifth of its employees.
In May, the airline said it would report annual losses of more than A $ 2bn (£ 1.1bn; $ 1.5bn), but expects domestic travel to rebound.
Mr Joyce said Tuesday that domestic travel could return to 50-60% of normal levels once Victoria and South Australia reopen.
Qantas Australia has been unable to reopen international routes except New Zealand due to the closure of its international border.
The airline has previously said it would lose $ 2.3 million a week from its international division.