The news means limited daily flights will still operate from Auckland, Christchurch, Wellington and Dunedin for essential workers or for reasons approved by the government.
From Tuesday, Qantas will offer all fully-vaccinated Australian frequent flyers a choice of three prizes via the Qantas App, while 10 lucky winners will secure free flights, accommodation, and fuel for a year.
New Economy Lite fares will start from just $59 one-way between Sydney and Byron Bay, putting it on a par with low-cost rival Jetstar. It comes despite the closure last year of budget subsidiary Tigerair.
Chief executive Greg Foran said he was “relieved” and “grateful” at the decision, which means the airline will operate seven services from Queenstown to Auckland and Wellington.
The union said employees are still concerned about the difficulties in accessing a jab or losing pay as a result of taking time off.
Prime Minister Jacinda Ardern announced overnight that the whole country would be placed into 'level four' restrictions for three days, following one reported case of COVID-19.