Air New Zealand is expecting a sizeable lift in its loss for the year ahead because of interruptions to the trans-Tasman travel bubble. The carrier said its cashflow had been dented by the suspension and it now expected an operating loss of no more than $530 million before tax and one-off items, compared with its previous forecast loss of no more than $450m. The squeeze on its cashflow and some looming big expenses would require it to dip into the government standby finance facility, it said. Its operating cashflow was positive because of strong domestic traffic, the revenue from air cargo supported by the government subsidy scheme, and $310m of deferred tax payments, which would have to start to be repaid in the current financial year, Air NZ said. Air New Zealand is expecting an operating loss of $450m for the just ended financial year, and is yet to give details on a capital raising to rebuild its finances after the impacts of Covid-19.

Source: Otago Daily Times August 03, 2021 21:45 UTC