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Air New Zealand forecasts annual loss; operating environment challenging and uncertain
June 18th 2021
Air New Zealand (Air NZ) said in a regulatory filing today it would remain in the red for the rest of 2020/2021 and in 2021/2022. Read More » The airline forecast a loss, before other significant items and taxation, of about NZ$450 million (US$314 million) for the 12 months to June 30, 2021, with a similar result forecast in the following financial year. The operating environment remained challenging and uncertain, the airline said. Domestic capacity was about 90% of pre-COVID-19 levels and long-haul international passenger volumes were at 5% of levels of the 2019 fiscal year. "The airline has its eyes firmly set on the future as we move out of the survival phase and into revival mode," Air NZ, CEO, Greg Foran, said in the regulatory filing to the Australian and New Zealand stock exchanges. The company is listed in both countries. The Star Alliance member has pushed back first delivery of eight 787s it ordered in 2019 from 2022/2023 to the 2023/2024 financial year. "The airline retains the ability to utilise a number of further contractual delivery deferral rights on other aircraft due to be delivered from 2024 onward," Air NZ said. The company is giving eligible staff the value of NZ$1,000 in shares in the airline in recognition of their efforts for the company during the pandemic.
