Air New Zealand reported a statutory loss of US$254.6 million for the six months ended December 31, but the company is confident that brighter days are on the way.
For the six months ended December 31, 2021, Air New Zealand reported a statutory loss before taxes of US $254.6 million (NZ $376 million). In comparison, the same time last year saw a statutory loss before taxes of US $71.1 million. The airline's operational income was down 9% year over year, owing to a 26% drop in passenger revenue as a result of the national alert level restrictions and 107-day Auckland lockdown.
Border restrictions and lockdowns contribute to the half-yearly loss
The extended lockdown and Auckland border restrictions led to the loss in the first half and an exceedingly difficult period for the airline's 8,400 employees, compared to 2020 and 2021, which faced shorter, occasional lockout.
The reopening of the New Zealand border is great, but foreign flights should be avoided
Air New Zealand has available flexibility of US $950 million as of February 23, 2022, consisting of roughly US $115.1 million in cash, US $162.5 million in funds on the New Zealand Government crown facility, and the US $680 million in redeemable shares. As of December 31, 2021, the total amount drawn on the crown facility was the US $369 million, and as of February 23, it was the US $514.6 million.
Air New Zealand now expects a loss before taxation and other major items of more than US$541.7 million in the fiscal year 2022 (ending June 30, 2022).
