Uncertainty over the outcome of the pandemic on its domestic and international operations makes its impossible for Air New Zealand to make any guidance for its financial year 2022. The carrier expects a significant impact on its financial and operational results from the latest lockdowns following the Delta variant of the Covid virus in New Zealand. New lockdowns disrupt recovery Air New Zealand.

ANZ reported a $289 million net loss after taxation for FY21 compared to $-454 million the previous year. The loss before significant items and taxation was $440 million versus $-87 million in 2020.
Total revenues were $2.517 billion, down from $4.836 billion. Cargo revenues were up by 71 percent to $769 million. They benefitted from $333 million in government freight support schemes.

With its international network virtually non existent as New Zealand took a strict line with border closures and lockdowns, the airline had to rely on its cargo and domestic services only. Of the 8.6 million passengers carried, 8.1 million were on domestic services and just 72.000 on International routes. Domestic traffic recovered strongly until July and was back to 93 percent of pre-Covid levels. Corporate travel also rebounded positively. Then the Delta variant hit the country and resulted in new lockdowns that only this week have been extended. Already in June, the carrier was sombre on its 2022 outlook.

Air New Zealand further reduced costs in its second half year, from $67 million per week to $32 million. Its monthly cash burn was $96 million in HY1 but turned positive to $9 million in HY2. for the first six months of FY22, the carrier is expecting headwinds from reduced bookings and capital expenditure in the delivery of aircraft that have been previously deferred.

The airline had $1.3 billion in liquidity by August 24. It had planned a capital raise on September 30, but this has been deferred to the first quarter of 2022 as the government deems the current environment “is not sufficiently certain and stable to enable the Crown to provide a firm pre-commitment to support a planned equity raise.”

On its fleet plans, Air New Zealand will continue further simplification. All seven Boeing 777-300ERs will have left by 2027, which follows after the phasing out of the 777-200s. The wide-body fleet will consist of twenty 787s in 2027, up six from 2021. Deliveries of two Dreamliners have been deferred from 2023-2024 to 2024-2026. The cabin refurbishment of fourteen 787s is scheduled from 2023.
The narrow-body fleet will grow from 31 to 33 Airbus A321neo’s in 2027, although two have been deferred from 2024 to 2027. The carrier has no Capex commitments beyond 2028.
The regional fleet will continue to exist of 23 Bombardier Q300s and 29 ATR 72s, one more than this year.


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Richard Schuurman
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Active as journalist since 1987, starting with regional newspaper Zwolse Courant. Grand Prix reporter in 1997 at Dutch monthly Formule 1, general reporter Lelystad/Flevoland at De Stentor/Dagblad Flevoland, from 2002 until June 2021 radio/tv reporter/presentor with Omroep Flevoland.
Since mid-2016 freelance aviation journalist, since June 2021 fully dedicated to aviation. Reporter/editor AirInsight since December 2018. Contributor to Airliner World, Piloot & Vliegtuig. Twitter: @rschuur_aero.

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