This comes after a similar announcement by Air New Zealand yesterday.
The Government confirmed this week it is restricting seats on international flights for people wanting to return to New Zealand.
In a statement this morning the minister in charge of quarantine and isolation facilities Megan Woods said the Government and Air New Zealand had agreed to manage incoming bookings in the short term.
This would enable the Government to safely place New Zealanders arriving home into a managed isolation or quarantine facility, said Woods.
Woods said "we were never going to let" border facilities reach maximum capacity.
Air New Zealand chief executive Greg Foran described blocking bookings as the right thing to do.
The national carrier's new boss said it would deal with the revenue loss at a future stage, but receiving compensation from the Government was still a possibility.
"I'm very confident we will end up on the right side of the ledger for all concerned."
Foran said his discussions with the minister in charge of isolation facilities Megan Woods was that all airlines were following the same approach.
"I'm sure they are in discussions with them and they will come to the right solution".