Air New Zealand in recovery mode; shares FY23 earnings guidance

September 22, 2022 04:59 PM NZST | By Manika
Follow us on Google News:


  • Air NZ announced it is on the path to recovery.
  • The airlines expects earnings to be in the range of NZ$200-NZ$275 million in FY23.
  • Air NZ shares were trading in green at the time of writing this.

Shares of Air New Zealand (NZX:AIR) opened higher on Thursday as the national carrier of the country announced that it was in recovery mode. At its Annual Shareholder Meeting, the company said that it had begun to recover despite CY22 being a year of highs and lows for the airline.

Air NZ said that it was on the path to recovery with a NZ$2.2-billion recapitalisation as the country’s borders reopened to the world. It has started flying back to most of its international ports and added a new service to New York on 17 September.

Chairman of AIR, Dame Therese Walsh, said that even though there was some uncertainty ahead due to challenging macroeconomic conditions, the demand for travel was picking up pace.

FY22 financial performance

For FY22, the Company reported an operating revenue of NZ$2.7 billion, and a loss before other significant items and taxation of NZ$725 million. The company’s statutory loss was NZ$810.

As per the company, it suffered a 100-day loss between August and November 2021 due to the impact of the Delta variant in NZ. After that, the Omicron variant also impacted the domestic network. This, together with the rising cost of fuel and inflationary pressure on the cost base, contributed to the financial loss for the year.

However, cargo was the main contributor to the revenue, delivering NZ$1.0 billion, as per Air NZ. The liquidity position of the airline as on 20 September was NZ$2.4 billion, consisting of NZ$2 billion in cash and NZ$400 million of available funds on the unsecured loan facility with the Crown.

In its release on the NZX, the Company also revealed an uptick following the phased reopening of NZ borders. The figures improved from March onwards since travel restrictions started to lift. It said, bookings at present in the domestic network are almost at 105% of pre-COVID-19 levels, and corporate bookings continue to trend towards pre-COVID-19 levels. On the international circuit as well, the company has recovered almost three quarters of the 2019 levels, the company said.

Air NZ’s FY23 Outlook

While revealing the outlook for FY23, the company said that forward sales continued to be strong and it expected earnings to be in the range of NZ$200 million to NZ$275 million. However, the airline refrained from providing its full-year guidance this time citing uncertain economic environment and inflationary pressures on cost.



The content on this website, including, but not limited to, any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (“Content”) is a service provided by Kalkine Media New Zealand Limited (Kalkine Media, we or us) and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide financial advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests users seek financial advice from a financial advice provider, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all liability to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without any express or implied warranties of any kind. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit a source wherever it is indicated or is found to be necessary or desirable.

Top Listed Companies

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK