The carrier predicts it will lose up to 75 million dollars because of coronavirus.
Flights to Seoul will be suspended from late next week and services cut back across Asian, Tasman and domestic networks.
House of Travel's Brent Thomas says running an airline is a marginal business.
He says although Air New Zealand has made good profits over the years - it all depends on how many people they can move.
Political editor Barry Soper says airlines are taking a hit globally.
He says Asian airlines could be 44 billion dollars out of pocket - and Australia's Qantas is looking at a hundred million dollar loss.
The Government will decide today whether to extend its ban on travellers from China.