Air New Zealand Cuts Full-Year Loss Forecast For a Second Time

DALLAS - Air New Zealand (NZ) has cut its full-year loss forecast for a second time after the demand for travel to the country increased following the reopening of the country's borders.

The carrier expects to report a loss of less than NZ$750m (US$480m) after tax. This compares to an earlier loss forecast of over NZ$800m announced in February.

Difficult Times

Air New Zealand has been significantly impacted by the uncertainty over the country's borders reopening following the Omicron coronavirus variant outbreak. The county endured one of the most stringent lockdowns in the world. This led to doubts over the demand for international travel, forming the bulk of the carrier's network.

In a filing to the stock exchange, Air New Zealand said: "The airline continues to see strong passenger booking activity on short-haul and international services following the opening of the New Zealand border. Domestic demand has also improved in recent weeks with business-related demand returning to approximately 90% of pre-Covid levels."

Bouncing Back

Indeed, the carrier has recently brought back 800 staff members and restarted flights to Australia, its biggest market. It also relaunched flights to Singapore and announced the start of non-stop services to New York (JFK) in September.

However, the airline has warned that, despite positive recovery signs, it still faces many challenges. "The airline remains mindful that the macroeconomic environment continues to be uncertain with disruptions caused by the impact of Covid-19 variants, continued travel restrictions in some markets, and the ongoing conflict in Ukraine contributing to high jet fuel prices."

Featured Image; The airline remains aware that it still faces significant challenges but is well-positioned to weather the storm. Photo: Daniel Gorun/Airways.