Jetstar has suspended all domestic flights in New Zealand for the next week and a-half.

The freeze in services follows the Government's extension of alert level 3 restrictions in Auckland, as the rest of the country remains at level 2.

"During this period travel restrictions will vary across the country and as a result, Jetstar has temporarily suspended all domestic flights from Tuesday 11.59 pm (NZT), until at least the end of Wednesday 26 August," the airline said in a statement.

"If you have been impacted by flight cancellations, you will be contacted directly by Jetstar over the next 24 hours with your available options."

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Customers with flights booked before August 18 who no longer wish to travel are able to request a credit voucher or move their travel plans to any flight up to September 11 with no charge.

This would help to free up seats for those that need to travel domestically for essential reasons.

Grounded: Jetstar has frozen flights for the next week and a half. Photo / File
Grounded: Jetstar has frozen flights for the next week and a half. Photo / File

"Customers with Jetstar bookings to fly between Tuesday 11.59pm and Wednesday 26 August will be contacted directly to explain available options, which include moving their date of travel forward to return home on any available flight on or before 18 August at no additional cost, or request a credit voucher refund."

The airline said face masks are strongly recommended on all flights to and from Auckland.

Under alert level 3 in Auckland, inter-regional travel is highly limited to, for example, essential workers, with limited exemptions for others, according to Government rules. Most Air NZ flights are through its main Auckland hub.

Under alert level 2 domestic travel is allowed but social distancing means that passenger loads on planes could be restricted.

Air New Zealand recently made mask wearing compulsory on all flights out of Auckland.

For the duration of the change in alert levels, Air New Zealand's front of house employees and domestic cabin crew will also wear masks and gloves, and pilots will wear masks when interacting with customers or walking through the terminal.

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On Friday, Air NZ said it ''will endeavour'' to operate its current schedule as planned throughout the weekend and on Monday August 17 to allow people seeking to return home to do so.

From Tuesday it will operate a reduced domestic schedule to and from Auckland.

There will be 13 weekly returns to Christchurch, 3 to Gisborne, 7 to Kerikeri, 3 to Napier, 3 to Palmerston North, 3 to Tauranga, 7 to Wellington and 7 to Whangarei.

The remainder of the network - which is under level 2 - is unchanged.

Air New Zealand said this evening that anyone affected by the alert level changes can have their booking held in credit to use towards future travel.

In July Jetstar dropped 25,000 flights to under $50.

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Customers were able to pick up a one-way flight between Auckland and Queenstown for $49, between Christchurch to Wellington for $32 and from Auckland to Christchurch for $34.

Tickets sold from the July promotion included travel dates between mid-August 2020 to mid-September 2020.

Since the governments announcement on Tuesday night, the airline industry has been hit hard.

Cameron Bagrie, the managing director and chief economist at Bagrie Economics, was due to travel to Invercargill on business but had to swiftly return home to Auckland because of Covid-19 restrictions.

Bagrie was only one of two passengers aboard the Wellington to Auckland flight.