Qantas says it will cut at least 6,000 jobs across all parts of the business and continue to stand down 15,000 employees as part of its plan to recover from the impact of the COVID pandemic.
Australia's flag carrier also said it will ground at least 100 aircraft for up to 12 months and reduce $15 billion in costs over the next three years.
Qantas' domestic capacity is currently running at about 15 per cent of its pre-coronavirus levels, following an easing in social and travel restrictions.
The majority of staff stood down are associated with the airline’s international services.
CEO Alan Joyce estimates close to $600 million will be spent on redundancies.
“We have to position ourselves for several years where revenues will be much lower. And that means becoming a smaller airline in the short term,” Mr Joyce said.
“This is something that weighs heavily on all of us. But the collapse of billions of dollars in revenue leaves us little choice if we are to save as many jobs as possible, long term.”
The job cuts have been criticised by the Transport Workers Union, which is demanding Qantas halt redundancies until the federal government makes an announcement on whether JobKeeper supports for aviation will be extended beyond September.
Qantas Chief Executive Officer Alan Joyce. Source: AAP
"Before Qantas slashes thousands of workers’ jobs ... it should be lobbying the federal government for an extension to JobKeeper and financial support to allow the airline to weather the crisis," TWU National Secretary Michael Kaine said.
"It is because of government restrictions that aviation was grounded to a halt, yet the assistance and assurances have been paltry."
"Qantas is now making hasty decisions to slash jobs which will affect thousands of families."
ACTU president Michele O'Neil said the announcement proved Qantas had abandoned Australia and its workers in order to preserve profits.
She also took aim at Mr Morrison for not extending JobKeeper payments to all aviation workers.
Mr Joyce said the airline is having “good discussions” with the federal government about extending the length of JobKeeper support for its workers.
“Despite the hard choices we’re making today, we’re fundamentally optimistic about the future. Almost two-thirds of our pre-crisis earnings came from the domestic market, which is likely to recover fastest.”
Prime Minister Scott Morrison extended his "deepest regrets" to those affected by the Qantas announcement on Thursday and said the aviation sector would need continued support.
"We are just working through the best way to target and deliver that support," he told reporters in Sydney on Thursday.
He said "JobKeeper or other measures" could be used to help the sector in the future.
Mr Joyce defended the decision to sack workers while JobKeeper is under review, saying employees needed clarity.
"The prime minister and treasurer have said there are some industries that are more affected than others," Mr Joyce said.
The Qantas chief has been talking to state governments about reopening borders for domestic travel, which remains heavily curtailed amid restrictions.
He's also hopeful the border with New Zealand can open before July next year, but understood that would depend on health advice.
"We are very keen for the borders to be open... we will continue to talk to the states."
Qantas shares have been placed in a trading halt, with the company to raise $1.9 billion through a shares sale.
This will comprise of a $1.4 billion institutional placement and another $500 million to be raised through a share purchase plan for retail investors.
The aviation industry has been one of the hardest hit by COVID-19, with passenger demand plunging as travel restrictions were put in place.
The federal government has poured more than $1.2 billion in assistance to the sector to underwrite key air routes between capital cities and regional centres.
