Air New Zealand Sees Larger 2022 Loss After Australia Travel Suspended –Update


By Stephen Wright

WELLINGTON, New Zealand–Air New Zealand Ltd. has forecast its losses to increase after the government suspended quarantine-free travel with Australia for two months.

The airline said its loss for the financial year that ends June 2022 will be as much as 530 million New Zealand dollars ($372 million) before tax and signficant items, compared with a previous forecast of about NZ$450 million.

Prime Minister Jacinda Ardern’s government halted a travel bubble with Australia in late July because of the risk that the more transmissible Covid-19 Delta variant could reach New Zealand, which has had little more than 2,000 Covid-19 cases and few deaths.

Air New Zealand said Wednesday it will tap a NZ$1.5 billion government loan by the end of August because its operating cashflow has reduced. The carrier, half-owned by the New Zealand government, said it had last drawn on the credit facility in February and its borrowings from it total NZ$350 million.

Air New Zealand, which plans to call on shareholders for a cash injection by the end of September, also has forecast a loss of NZ$450 million for its 2021 financial year due to the pandemic decimating international travel.

Write to Stephen Wright at stephen.wright@wsj.com



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