Air New Zealand suspends cash burn guidance, draws down loan

Air New Zealand said Thursday it had suspended its cash burn guidance due to uncertainty about domestic COVID-19 alert levels and had drawn down another NZ$105m ($75.22m) from a government debt facility. The airline said it was operating around 40% of its domestic network given tough travel restrictions in the country’s largest city, Auckland. “While the near-term situation is uncertain, I am extremely hopeful as we observe our population making great strides in terms of vaccination rates, which is critical to reconnecting New Zealanders with the world,” Air New Zealand Chairman Therese Walsh said at the carrier’s annual meeting. PM Jacinda Ardern said last week New Zealand will end its strict lockdown measures when 90% of its eligible population is fully vaccinated. About 72% of those eligible have been fully vaccinated so far, while nearly 87% have received a first dose. Air New Zealand last month said it was burning through around NZ$25m to NZ$35m of cash a month in the domestic market. The closure of a quarantine-free travel bubble with Australia had led to another NZ$20m to NZ$25m a month in cash burn, it said at the time. The airline has access to a NZ$1.5b debt facility from the government, which is also its majority shareholder.<br/>