Air NZ flags equity raising to combat COVID costs.
Mounting losses at Air New Zealand have led to the largely grounded, cash-strapped carrier to outline plans for an equity capital raising that will likely be launched by the end of Mar at the earliest.
The steps to recapitalise its operations arrive as Air New Zealand announced an interim statutory loss of NZ$376 million for the six-month period ending 31 Dec 2021 this morning, as well as expectations of a full 2022 financial year loss before taxation and other significant items exceeding NZ$800 million.
New Zealand’s tough border policies as well as lockdowns and travel restrictions have all conspired to dent the airline’s bottom line in the last six-month reporting period, with CEO Greg Foran conceding the lack of international travel from its home base had done the majority of the damage.
“The airline has typically derived two-thirds of its revenue from its international passenger network and much of that was effectively grounded for the majority of the first half,” he said.
More details in today’s issue of Travel Daily.