By Stephen Wright

WELLINGTON, New Zealand--New Zealand said it will halt quarantine-free travel with Australia's most populous state after new Covid-19 cases in Sydney.

The restrictions on travel between New South Wales and New Zealand will come into effect later Thursday, New Zealand's pandemic response minister, Chris Hipkins, told a press conference.

The source of infection for two new cases of Covid-19 in Sydney has yet to be determined, according to a New Zealand government statement, leading to concerns of community spread of the virus.

New Zealand and Australia began quarantine-free travel in mid-April, a year after closing their borders to most travelers. The easing of restrictions was welcomed by the thousands of families separated by the pandemic, as well as companies such as Auckland International Airport and Air New Zealand which have suffered a sharp slide in their revenue.

Both countries have largely contained the spread of Covid-19 through strict lockdowns and border controls.

Write to Stephen Wright at stephen.wright@wsj.com

(END) Dow Jones Newswires

05-06-21 0214ET