Air New Zealand posted a NZ$72 million ($53.4 million) half-year loss Thursday and warned the airline was poised to plunge additional into the purple because the coronavirus pandemic continues to cripple worldwide journey.
The flag service, which is majority owned by the New Zealand authorities, mentioned the loss within the six months to December 31 in comparison with a NZ$101 million revenue over the identical interval within the earlier yr.
Air New Zealand mentioned it had skilled “probably the most difficult yr within the airline’s 80-year historical past” and there was little prospect of short-term aid.
“Regardless of sturdy home and cargo efficiency, the situations we’re presently modelling counsel we’ll make a major loss in 2021,” it mentioned.
It reported that elevated cargo flights and the relative power of the home enterprise weren’t sufficient to offset the dive in demand brought on by the worldwide shutdown of borders to worldwide travellers.
Total working income fell 60 p.c to NZ$1.23 billion throughout the half yr, with cargo the most effective performer up 91 p.c to NZ$373 million.
Labour prices fell 42 p.c to NZ$681 million after a virus-related redundancy programme that resulted within the lack of greater than 4,000 jobs.
Air New Zealand mentioned home capability was working at 76 p.c of pre-coronavirus ranges, fuelled by excessive demand in a rustic which has no inside journey restrictions as a result of the virus is basically contained.
“The sturdy restoration in home journey has been actually thrilling as a result of it reveals that when individuals trust to journey, they’ll,” it mentioned.
“With the roll out of the vaccines underway around the globe and right here in New Zealand, this has optimistic implications for our restoration when borders open.”