Air NZ expects more cargo revenue but warns of full-year losses

Air NZ expects cargo revenue for the coming financial year to exceed previous years’ levels, after being awarded four more months of cargo flights under a government scheme. Under the International Air Freight Capacity scheme, the New Zealand government will provide financial assistance to all carriers operating cargo flights, to ensure “continuity for aviation freight in and out of New Zealand”. Air New Zealand says the financial support will add between NZ$100m ($70.4m) and NZ$145m to its cargo revenue over the four-month period, which begins 1 December. “With the certainty of the next four months of this arrangement, the company expects cargo revenue for [Financial Year 2021] to exceed [Financial Year 2020] levels,” says Air NZ. Still, the carrier, which has been awarded an average of 55 flights a week, expects that it will still be in the red for the financial year ended 30 June 2021, despite the increase in cargo revenue. It reported an NZ$87m loss for the year ended 30 June, its first loss in 18 years, as the coronavirus outbreak torpedoed travel demand. <br/>