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Air New Zealand downgrades 2022 earnings guidance
August 4th 2021
Air New Zealand (Air NZ) said the suspension of quarantine free travel between Australia and New Zealand would result in a larger than expected loss in its current financial year. Read More » In a regulatory filing to the country's stock exchange, it forecast a loss, before other significant items and taxation, of NZ$530 million (US$375 million) for the 12 months to June 30, 2022. The figure was an NZ$80 million deterioration from the carrier's previous guidance of a NZ$450 million loss before other significant items and taxation. The NZ government suspended trans-Tasman quarantine free travel for eight weeks on July 23. "The airline continues to assess the impact of this temporary suspension on passenger demand, in conjunction with an expectation demand across the Tasman may be slower to recover following the re-opening of a travel bubble and the risk of future suspensions," Air NZ said. "This has resulted in Air New Zealand reassessing its 2022 financial year earnings expectations." Air NZ shares closed 0.7% lower, at NZ$1.48, on the New Zealand exchange. At a recent address to a New Zealand industry group, the carrier's CEO, Greg Foran, said resumption of international travel would depend heavily on the country's vaccination program, but domestic travel would remain the core of the airline's business.
