'We've seen a very significant downturn in inbound tourism into New Zealand which started 12 months ago and has accelerated in the last six months,' chief executive Rob Fyfe told commercial television.

'That's resulted in us reducing our long-haul capacity in particular,' he said.

New Zealand's flag carrier said it was aiming to save NZ$20 million (S$16 million) annually through the job cuts, most of which would be voluntary, Mr Fyfe said in a statement.

The airline is shedding up to 100 long-haul cabin crew positions, and most of the rest are in technical jobs, he said.

Capacity in the airline's long-haul business is being reduced by eight per cent year-on-year to reflect the reduction in demand from overseas tourists, the company said.

The airline has been cutting wage costs in recent months, with pilots taking leave without pay, staff not being replaced after leaving, and some employees working fewer hours.

'We have been working hard on a series of initiatives to minimise the need for redundancies,' Mr Fyfe said.

Statistics New Zealand said late last month that visitor arrivals to the country fell seven percent in September, compared with the same month last year. -- AFP