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Air New Zealand records US$195.2 million loss; higher oil prices add to tough operating environment
February 25th 2022
Air New Zealand (Air NZ) chair, Dame Therese Walsh, has warned of more pain for the Kiwi flag carrier from the ongoing impact of COVID-19 and rising fuel prices. Read More » The airline reported a net loss of NZ$272 million (US$195.2 million) for the six months to December 31, from a restated net loss of NZ$73 million in the same months in 2020. Revenue declined 8.9%, to NZ$1.1 billion, Air NZ said in a regulatory filing to the Australian and New Zealand stock exchanges. "The 2022 financial year has and will continue to be much more heavily impacted, both by continued suppressed demand and rising costs,” Dame Therese said. "The cost of fuel has been significantly increasing. Although we have hedging strategies in place, we expect to see these rising costs start to come through in the second half and beyond." Air NZ has forecast losses, before taxation and significant items, of more than NZ$800 million for the full 2021-2022 financial year, representing close to double the reported NZ$440 million losses of 2020-2021.
