Air New Zealand defers cash call for second time, aims for Q1 2022

Air NZ Friday delayed a planned capital raise for the second time this year, as uncertainty around COVID-19 forced the government to back out of investing at present. The government has promised to take part in an equity raise at a later date to maintain its majority shareholding in the national flag carrier, Air New Zealand said, pushing back its cash call to the first quarter of 2022 from an earlier target of September. With the pandemic battering airlines globally, the company earlier this month forecast a bigger annual loss, bracing for a hit from the suspension of a quarantine-free travel arrangement between the archipelago and Australia. The New Zealand government said Thursday it plans to allow quarantine-free entry to vaccinated travellers from low-risk countries from early 2022, as it looks to reopen its borders after nearly 18 months of pandemic-induced isolation. Air NZ said on Friday it expects to repay the entire amount drawn under a NZ$1.5b loan facility with the government after it is recapitalised. The company has drawn NZ$350m to date, it said earlier this month.<br/>