Air New Zealand said that having now taken numerous actions to reduce the airline’s cost base, cash burn averaged approximately $79 million per month from September 2020 through January 2021. This compares to an average cash burn of $175 million per month in the fourth quarter of the 2020 financial year.
It estimates an average monthly cash burn for the remaining five months of the financial year to be in the range of $45 million to $55 million while international travel restrictions remain and assuming continued operation of the domestic network with no further lockdowns or social distancing requirements, as well as a continuation of government-supported cargo flights.
Air New Zealand said it is actively engaged with the Crown as the company has continued to assess its longer-term capital structure and funding needs. Air New Zealand has recently reconfirmed to the market and the Crown its intention to complete an equity capital raise before 30 June 2021.
Air New Zealand has limited its half-year loss to just $185 million as it looks to blue skies.
The airline’s loss number is before tax and other significant items compared to earnings before other significant items and taxation of $198 million for the same period last year.
Statutory losses before taxation of $104 million include an $81 million gain from other significant items, compared to a $139 million profit before taxation for the first half of the previous financial year.
It said that the continuation of significant restrictions on international travel to and from New Zealand saw the airline’s operating revenue decline 59 read more ⇒