Jetstar is cutting 10% of its domestic flights in January as the budget airline continues to fight with two unions over pay and conditions.
Ground crew represented by the Transport Workers Union and the Australian Federation of Air Pilots began industrial action on Friday and continued over the weekend.
Baggage handlers and ramp workers will take protected industrial action again on Thursday and pilots will do low-level work bans until 20 December.
The company said reducing its January flight schedules would limit disruption to passengers, who would be able to reschedule flights or get refunds.
Flights hit will mostly be high-frequency routes to enable as much passenger flexibility as possible.
Jetstar said the industrial action into January combined with the December action was costing the company between $20m and $25m.
The airline said the pay claims by the TWU and AFAP were “unsustainable”.
Jetstar also said it was reviewing the viability of longer-haul international flights by its 787-8 fleet, which includes trips to Honolulu.
A final decision on the flights is expected in March 2020.
Jetstar has said it is offering staff a 3% pay rise, but the TWU has a claim for more rest breaks, a guaranteed 12-hour break between shifts, guaranteed 30 hours a week and annual wage increases of 4%.
The AFAP is pursuing a 3% annual increase and has attacked Jetstar’s claims that pilots want an effective 15% rise.