Australia Experiences Spike In COVID-19 Infections, New Zealand Stops Travel Bubble From Tonight

An illustration of Auckland Airport, New Zealand. (Wikimedia Commons/Nick-D)

JAKARTA - The New Zealand government has decided to suspend quarantine-free travel arrangements with Australia for at least the next eight weeks starting tonight.

The announcement, made directly by New Zealand Prime Minister Jacinda Ardern, is in line with the Australian Government's efforts to combat the highly contagious Delta variant.

"We've always said our response will evolve as the virus develops. It's not a decision we take lightly, but it's the right decision to keep New Zealanders safe," Jacinda Ardern told reporters in Auckland. .

"The travel bubble has been paused for travelers to and from New South Wales, Victoria and South Australia," Ms Ardern said, referring to the three Australian states battling COVID-19 infections.

The bubble is a rare two-way quarantine-free arrangement in Asia, where countries have closed most of their borders during the pandemic. The Singapore-Hong Kong bubble plan has been delayed several times.

Demand for flights between Australia and New Zealand has been lower than expected since the bubble opened on April 19. Ticket sales from April 6 to 12 for trips from New Zealand to Australia recovered to 27 percent of volume in the same period in 2019. The reverse direction recovered to 69 percent from 2019 levels, according to ForwardKeys data provided to Reuters.

Meanwhile, scheduled airline capacity between Australia and New Zealand this month was around 44 per cent of 2019 levels, according to data from aviation analytics firm Cirium, well below an initial estimate of more than 70 per cent.

Air New Zealand Ltd., and Qantas Airways Ltd., were the sole carriers for each country on the route, and several breaks in the bubble as a minor outbreak undermined consumer confidence.

Previously, the travel bubble had been launched as test-free as well as quarantine-free. However, this month New Zealand introduced testing requirements that make it more expensive for Australians to visit.

The New Zealand government said next week there would be return flights for New Zealanders from all Australian states and territories, who would require proof of a negative pre-departure COVID-19 test.

Passengers arriving from Sydney will be required to spend two weeks in government-managed quarantine, without exception to avoid the spread of COVID-19 infection.

Given the current state of affairs, Air New Zealand said suspending the travel bubble would have a short-term operational and financial impact on its business.

Both Qantas and Air New Zealand said most flights connecting Australia - New Zealand would be canceled from July 31. However, they will retain a small number of flights for essential travel and carriage.