Air New Zealand annual loss widens on COVID lockdowns

Air New Zealand Ltd on Thursday reported a bigger annual loss due to a months-long COVID-19-related lockdown in Auckland and border closures for much of the financial year. The carrier, however, said its total flying capacity for fiscal 2023 would be at 75%-80% of pre-pandemic levels, helping it guide to a significant improvement in performance compared with 2022. New Zealand began a gradual reopening of its international border in April in a boost to its national carrier. Domestic demand has also made a robust recovery following the removal of COVID-related curbs, though high crew illness levels during the winter season have led the airline to trim some of its capacity. Air New Zealand said earlier this month it would operate its domestic and international schedule at 90% of pre-COVID capacity for the next six months. The airline still did not provide earnings forecast for 2023, citing uncertainties around inflationary cost pressures and volatility in jet fuel prices, and said it would not pay dividends until earnings “substantially recover”. The fiscal 2022 loss of NZ$725m ($448.6m) before tax and items was larger than the NZ$444m loss a year earlier and Refinitiv estimate of NZ$718m, but within its forecast of a loss of under NZ$750m.<br/>