With extended lockdowns and state border closures, Qantas is furloughing around 2,500 workers.
Pilots, flight attendants and airport workers will be stood down for two months at least.
It affects Qantas and Jetstar employees, mostly in NSW.
Qantas expects most borders to remain closed for at least another two months.
"This is clearly the last thing we want to do, but we’re now faced with an extended period of reduced flying and that means no work for a number of our people," CEO Alan Joyce said.
"Fortunately, we know that once borders do reopen, travel is at the top of people’s list and flying tends to come back quickly."
Qantas had reached almost pre-pandemic levels before the latest wave a few weeks ago.
Employees stood down will be given a fortnight’s notice and will be paid until mid-August.
