Delta’s $ 2.6million day hits Air NZ as airline leverages more government loan

Air New Zealand is further reducing the government loan as the cost of blockages and suspended transtasman travel increases.

The airline says the monthly impact of nationwide Tier 3 or 4 travel restrictions in New Zealand is around $ 45-55 million, including the benefit of any wage subsidies received.

The monthly impact of a level 3 or 4 travel restriction only to Auckland, the rest of New Zealand operating at level 1 or 2 is around $ 25-35 million including salary

It says the monthly impact of the travel suspension between New Zealand and Australia is around $ 20-25 million.

The highest impact of Level 4 across the country and suspended transtasman travel totals $ 80 million per month or $ 2.6 million per day.

The airline drew an additional $ 85 million from the government support loan facility, bringing the total to $ 435 million.

The remaining funds available under the facility amount to $ 1.065 billion.

During the latest Covid and lockdown outbreak, the airline received $ 17 million in wage subsidies, in addition to $ 111 million over the past 18 months.

“After a month of limited exchanges, it is still unclear how long these alert levels, the suspension of transtasman-free travel (QFT) and associated travel restrictions will continue, as well as how demand will continue. will reinstate when the restrictions are lifted, ”the airline said. in a notice to the NZX.

Cargo flight operations continue with around 50 flights per week and the company is seeing strong demand for air travel in areas of New Zealand that are currently subject to Level 2 restrictions.

The airline had announced last month that it would use the loan due to reduced operating cash flow, as well as expected cash payments relating to the aircraft in the coming months.

In August, Air NZ reported a loss before other material items and taxation of $ 440 million for the year to June 30 – its first full 12-month operating period with international travel restrictions linked to Covid-19.

Using the same metric, the company reported a loss of $ 87 million for fiscal 2020.

Statutory pre-tax losses, which include a gain of $ 29 million from other significant items, amounted to $ 411 million, compared to a loss of $ 628 million last year.

Previous Avelo Airlines begins service at McCarran International Airport
Next Growing healthcare infrastructure and transition from

No Comment

Leave a reply

Your email address will not be published.