News
Air New Zealand reports US$201.3 million annual loss
August 26th 2021
Air New Zealand (Air NZ) today reported a net loss of NZ$289 million (US$201.3 million) for the 12 months to June 30, compared with a net loss of $454 million a year earlier. Read More » Operating revenue fell 48% to $2.5 billion, Air NZ said in regulatory filings to the Australian and New Zealand stock exchanges. Operating costs tumbled 46.2%, to $2.2 billion. Air NZ chairman, Dame Therese Walsh, said the airline operated in a severely constrained environment in 2020-2021, given it was unable to fly to two-thirds of its network due to COVID-19. “In a severely constrained environment, Air New Zealand maintained cost discipline, focusing on delivering with excellence in the areas in its control," Dame Therese said. "The return of a strong domestic business and growth in the cargo services that underpin our key export markets was a reminder of the airline’s crucial role in New Zealand’s infrastructure." The reported year's operating revenue was 56.5% below the $5.8 billion posted in the pre-COVID-19 2018-2019 financial year.
The Star Alliance member's financial results presentation showed delivery of two 787s has been deferred to 2024-2026 from 2023-2024. The arrival at the carrier of two A321neos also has been pushed back from 2024 to 2027. The slide presentation highlighted the fact that the 787-9 and the 787-10 would be Air NZ's only widebody aircraft types by 2027, with its eight 777-200s permanently retired in 2020 and the seven 777-300ERs gradually withdrawn over the next six years.
Air NZ, which recently postponed a proposed capital raising until the first quarter of 2022, said it continued to have access to sufficient liquidity under a government loan facility that still had $1.15 billion in remaining funds. To date, the airline had drawn down $350 million of the facility and expected to draw down more funds in coming months. No earnings guidance for 2021-2022 was given due to the uncertainty surrounding New Zealand's current national lockdown, ongoing international travel restrictions and changes in the level of air passenger demand after restrictions are eased.
