Air New Zealand has reported a statutory loss before taxation of $376 million for the six-month period ending 31 December 2021, which includes a $9 million loss from other significant items (aircraft impairment and foreign exchange losses on uncovered debt).
Operating revenue declined 9 percent, driven by a 26 percent decline in passenger revenue due to the national alert level restrictions and 107-day Auckland lockdown.
Cargo revenue increased 29 percent on the same period last year to $482 million, supported by Government freight support schemes.
Fuel costs increased 14 percent to $174 million for the half year, with the increasing cost of fuel expected to impact the second half.
The airline’s liquidity as at 23 February 2022 is $1.4 billion, made up of approximately $170 million of cash and $1.24 billion of available funds under the remaining Crown Facility and Redeemable Shares.
Air New Zealand is currently expecting a loss before taxation and other significant items that will exceed $800 million for the full 2022 financial year and dividends remain suspended.
Steps to recapitalise the balance sheet are underway, including an equity capital raise that is intended to be launched by the end of March 2022 or shortly thereafter, subject to market conditions.
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