Qantas and Jetstar are cancelling flights scheduled for the second half of 2022 due to Australia's surge in COVID-19 cases.

The Qantas Group has advised it will be cutting back its flights planned for July, August and September as the expected number of passengers wanting to fly has dropped off.

The company had been planning for demand for flights to be at 102 per cent of the levels before the pandemic.

READ MORE: Australian Open crowds to be capped at 50 per cent capacity

However, following the recent surge in COVID-19 cases across the country, the demand for the third quarter of the year is expected to only be at 70 per cent of pre-pandemic levels.

"The sudden uptick in COVID cases is having an obvious impact on consumer behaviour across various sectors, including travel, but we know it's temporary," Qantas Group CEO Alan Joyce said.

The expected demand for international travel in the same period has fallen from 30 per cent to around 20 per cent of pre-COVID levels due to increased travel restrictions in countries like Japan, Thailand and Indonesia.

Qantas customers will be contacted directly from late January if their booking is impacted by cancellations and offered alternative flights that will be likely to be a difference of a few hours for domestic travel.

The company has said it will continue to utilise all of its crew despite the cancellation of flights.

Mr Joyce said the company was optimistic that the demand for flights would not take long to return to normal.

"This is a difficult time right across the community, but something we'll get through," he said.

Due to COVID-19 uncertainty, Qantas has extended its Fly Flex program, which enables customers to change their travel dates.

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A decision on whether Novak Djokovic will be allowed to stay in the country for the Australian Open is still yet to be made.

While a decision from Immigration Minister Alex Hawke was expected to be announced today, Prime Minister Scott Morrison confirmed at a press conference this afternoon Mr Hawke is still considering the matter.

"I will refer to Mr Hawke's most recent statement and that position hasn't changed," Mr Morrison said.

LIVE UPDATES: 'Most' thought unvaccinated Djokovic 'would be asked to leave'

"These are personal ministerial powers able to be exercised by Minister Hawke and I don't propose to make any further comment at this time."

When pressed further on whether it was safe to allow an unvaccinated non-citizen into Australia, Mr Morrison stood by the nation's border rules.

"Where fully vaccinated eligible visa holders could travel to Australia without needing to apply for a travel exemption and enter those states, allowing them to enter quarantine-free, the individual has to show they are double vaccinated or must provide acceptable proof that they can't be vaccinated for medical reasons," Mr Morrison said.

"That's the policy, which hasn't changed.

"That is the policy and we would expect authorities to be implementing the policy of the government when it comes to those matters."

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The original cancellation of Djokovic's visa had been overturned in court on Monday, however Mr Hawke can still use his ministerial discretion to cancel the Serb's visa.

A statement from Mr Hawke's office yesterday said the matter was still under consideration after Djokovic's legal team made a number of further submissions.

Mr Morrison's comments came after the Australian Open draw was delayed by more than an hour.

When the draw did take place, Djokovic was drawn against fellow Serb Miomir Kecmanovic in the first round.

Opposition Leader Anthony Albanese hit out at the Federal Government earlier today over the visa controversy, claiming he should not have been permitted to travel to Australia in the first place.

"Australia has a policy of not allowing unvaccinated people into Australia," Mr Albanese told Today.

"It is beyond my comprehension how we have got to this point.

"It should have been resolved at the point in which a visa was applied for."

Speaking to Today, Deputy Prime Minister Barnaby Joyce insisted the same rules must apply to Djokovic.

READ MORE: Djokovic blames immigration form error on support team

Mr Joyce said he would not attempt to pre-empt Mr Hawke's decision – but he made his own views clear.

"Obviously most of us thought because Mr Djokovic hadn't been vaxxed twice, he'd be asked to leave," he told Today.

"The vast majority of Australians didn't like the idea that another individual, whether they're a tennis player or the King of Spain or the Queen of England, can come up here and have a different set of rules to what everybody else has to deal with.

"Whether they agree with the rules or not, they believe they should abide by the rules, and that was the issue with Novak Djokovic."

Officials are separately investigating errors on his immigration form, which Djokovic described as "human error".

The tennis star yesterday also apologised for taking part in a media interview on December 18 after knowingly testing positive to COVID-19 the day prior, in a breach of Serbian isolation requirements.

He said he did not know of his positive diagnosis when he attended a tennis event earlier on December 17, and that attending the photoshoot was an "error of judgement".

"I felt obliged to go ahead and conduct the L'Equipe interview as I didn't want to let the journalist down, but did ensure I socially distanced and wore a mask except when my photograph was being taken," Djokovic said in a statement.

"While I went home after the interview to isolate for the required period, on reflection, this was an error of judgment and I accept that I should have rescheduled this commitment."

Spanish media has reported Djokovic is under investigation for a potential breach in entering that country while unvaccinated last month, meaning the tennis star is under scrutiny from authorities in three countries – Spain, Serbia and Australia.

A range of workers are now exempt from close contact isolation rules in Australia, National Cabinet has announced.

The Prime Minister said some workers will be able to get a negative rapid antigen test result and return to work to prevent the current supply chain issues plaguing the nation.

Here is what we know about the new rules.

READ MORE: Close contact isolation exemption rules extended to more workers

Who is exempt?

Scott Morrison said the new rules will ensure essential services can "continue to be staffed".

This will be in place for the following workers:

• Transport, freight and logistics
• Healthcare workers
• Emergency services including law enforcement, correctional services, energy resources and water, waste management
• Food, beverage and other critical good supplies
• Food distribution system and production system – this does not include hospitality
• Telecommunication, data, broadcasting and media
• Education and childcare

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What does it mean?

If you were one of the above-mentioned workers, you will only need to return a negative rapid antigen test result before returning to work.

Mr Morrison said this is to ease the pressure on workforce and supply chain shortage.

Why have the rules changed?

The changes come as many essential services and businesses have experienced staff shortages due to the close contact rules.

The staff shortages meant there were supply chain disruptions causing supermarkets to reintroduce purchase limits.

For anyone who is not one of these workers, the close contact rules remain the same meaning you need to isolate for seven days.

What about schools?

Mr Morrison also said it is "absolutely essential" for schools to return for term one this year.

"It is absolutely essential for schools to go back, safely, and to remain safely open if we are not to see any further exacerbation of the workforce challenges we are currently facing," he said.

With today's announcement, teachers will only need to get a negative rapid antigen test result before returning to the classroom.

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Prime Minister Scott Morrison has announced more changes to close contact rules to ease the pressure on workforce and supply chain shortages.

Speaking after a National Cabinet meeting, Mr Morrison said the list of people who can return to work with a negative rapid antigen test result after being deemed a close contact has been expanded.

"The most immediate extension to that is to all transport, freight and logistics employees," he said.

LIVE UPDATES: NSW records backlog of 78,000 positive RAT results

https://twitter.com/Fi_Willan/status/1481489702813593601

"Not just those directly involved in food distribution, all in the transport, freight and logistics centre.

"That will include those who work at service stations. To ensure that they can continue to be staffed and people can get access to those services."

Mr Morrison said the extension also covers all healthcare and support, as well as emergency services, including law enforcement, correctional services, energy resources and water and waste management.

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Food, beverage, and other workers in the critical supply chain will also be included, but this does not extend to hospitality workers.

"Telecommunication, data, broadcasting, and media" will also now be included in the list of workers who can return to work if they are a close contact, but return a rapid antigen test, the prime minister said.

Return to school 'absolutely essential'

Mr Morrison said it was very important for schools to return for Term 1 despite the high number of COVID-19 cases

"It is absolutely essential for schools to go back, safely, and to remain safely open if we are not to see any further exacerbation of the workforce challenges we are currently facing," he said.

"Schools open means shops open. Schools open means hospitals are open, it means aged care facilities are open, it means essential services and groceries are on the shelves. That is what schools open means, and it's very important they go back."

He added schools should be "first to open and last to close wherever possible and face-to-face learning prioritised".

Mr Morrison said the National Cabinet would have more information around the details on returning to school for parents and teachers next week.

"We did have a serious discussion about that today, and the advice from the medical expert panel. We will be confirming our views on that over the course of the next week," he said.

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Woolworths has introduced buying limits on painkillers and toilet paper nationwide due to supply chain issues caused by COVID-19.

Customers will only be able to buy two packs of painkillers and toilet paper both in-store and online.

"This is a precautionary move following recent food and grocery supply chain constraints and pockets of increased demand across select categories," the supermarket giant said in a statement.

LIVE UPDATES: NSW records backlog of 78,000 positive RAT results

"The limits will ensure more customers have fair access to toilet paper and analgesics."

In Western Australian Woolworths stores only, a limit of two packs per customer across mince, sausages and chicken products will be introduced due to "signs of excessive buying."

The purchase limits come due to stock shortages as a result of supply chain disruptions caused by COVID-19 as well as staff shortages due to isolation restrictions.

Woolworths already introduced purchase limits on rapid antigen kits.

In line with federal government guidelines, customers can only buy one pack however the packs can contain between one and seven testing kits.

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Woolworths Director of Stores Jeanette Fenske said it is an "anxious time" for customers.

"We will continue to closely monitor product availability across our stores, with stock continuing to be sent to stores daily," she said.

"Customers will notice some gaps on shelves but we're doing all that we can to meet demand."

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Meanwhile, other supermarket giants have also introduced buying limits on certain products.

At Coles, customers are now only allowed to purchase one packet of toilet paper, while packets of paracetamol, ibuprofen and aspirin will have a limit of two per buyer.

Buying limits are also in place at Coles for meat in all states except Western Australia.

Shoppers will be limited to two packs of chicken breast or chicken thighs from the meat department or six fillets from the deli.