Air New Zealand capital raising delayed

Air New Zealand has been given a three-month breathing space to get a better handle on how much money it needs to raise as it continues to burn through cash. The airline and its majority shareholder, the Government, said on Friday they have agreed to delay a planned equity capital raising which was originally expected to be completed by June 30. The proposed capital raising is now expected to be completed before September 30. Air New Zealand has burned through more than NZ$1b in cash since the Covid-19 pandemic hit, as it faced ongoing costs while being unable to fly many of its routes. Forsyth Barr head of research Andy Bowley said the airline could not continue to operate indefinitely under the current circumstances. “Financially it’s still very challenged by the cash burn that it’s encountered over the last 12 months, and the likely cash burn that will continue until borders fully reopen and it can resume long-haul services,” he said. The airline would use the three-month delay to get a better indication of how much capital it needed to raise. “Safe to say it will be well in excess of $1 billion of new equity capital.”<br/>