Air New Zealand sees back-to-back losses as crisis persists

Air New Zealand reported its first full-year loss in 18 years and said it is unlikely to return to profit soon as the coronavirus pandemic cripples international travel. The carrier posted a net loss after tax of NZ$454m ($300m) for the year ended June 30, down from a NZ$276m profit a year earlier. While unable to provide specific earnings guidance, it said current modeling suggests it will make another “significant” loss in 2021. The Auckland-based airline, which traditionally generates two thirds of its revenue from international travel, doesn’t expect passenger demand to return to 2019 levels until 2023 or beyond. “Until global borders reopen, we will continue to be significantly impacted by this crisis,” CEO Greg Foran said. “The unfortunate reality is that we don’t expect to see a return to long-haul travel for some time and until then we will be a keenly focused domestic airline.” Air New Zealand has laid off about 4,000 staff and grounded some aircraft, while domestic services have been hampered by a second lockdown in largest city Auckland after a new Covid-19 outbreak there. “Some airlines will not survive this,” Foran said. “The actions we have taken to date, albeit painful, are with a view to setting ourselves up for success in whatever competitive and demand environment emerges on the other side of this crisis.”<br/>