Is Air New Zealand all set to regain its lost sheen?

Summary

  • Air New Zealand is the national carrier of Aotearoa.
  • With the coronavirus pandemic spooking the entire world, the global aviation industry was severely impacted.
  • The Company is hopeful of coming on track with the re-opening of businesses.

Founded in 1940 and based in Auckland, Air New Zealand Limited (NZX:AIR; NZX:AIZ) is the flagbearer air carrier of New Zealand.

Apart from offering domestic and international transport services to passengers, the airline also provides engineering, cargo, and ground handling services.

During the pre-COVID-19 era, the airline ferried at least 17 million flyers a year with 3,400 flights every week.

Don’t Miss: Top 6 NZX Stocks With Impressive Dividend Yield -AIR, SKC, SPK, KPG, CEN, MEL

Source: Copyright © 2021 Kalkine Media

Wearing the Maori pride on its sleeve

It takes pride in its Maori symbol of the Mangopare, or the hammerhead shark, which has been engraved on all its aircrafts' tails. The said symbol, also known as koru in Maori, symbolises new life, growth, and optimism, and stands for strength, determination, and resilience.

Air New Zealand’s current operating fleet consists of 114 varied aircrafts, ranging from Airbus A320, Airbus A320 neo, Boeing 777-300, Boeing 777-200, Boeing 787 jet aircraft to Bombardier Q300 turboprop aircraft. 

AIR boasts many awards and recognition

The flag carrier has been awarded numerous awards and recognition. Some of them include Airline of the Year in 2020, 2018 and 2017, and ATW Eco Airline of the Year in 2019. In 2018, it was awarded as Australasia's Leading Airline.

Moreover, AIR was bestowed with Randstad Award for being New Zealand's most attractive employer in 2018.

How to buy Air New Zealand’s shares?

One can easily own the airline's shares. Prospective investors can buy its shares through a licensed broker, who gives easy access to the NZX. With the help of a reliable broker, one can not only trade in shares of AIR but can also buy and sell the shares of numerous other renowned and profitable companies.

COVID-19 struck aviation industry hard

With the ghastly pandemic hitting the entire world in 2020, hospitality and tourism sectors bore the maximum brunt. With nationwide lockdowns and restrictions and a ban on international travel, the global aviation industry was hugely impacted.

Must Read: How COVID-19 pandemic plagued NZ tourism; The sector’s response, and prospects

In its half-year results ended 31 December 2020, Air New Zealand suffered NZ$185 million as a loss before taxation, owing to the repercussions of the pandemic on the aviation sector.

Read: Air New Zealand Granted Loan Extension of NZ$600M

However, the Company's operating revenue stood at NZ$1.2 billion during the initial six months of the year, with network flying lowering by 65%.

Greg Foran, AIR's CEO, expressed that in spite of headwinds, the Company successfully navigated through the crisis. Its available short-term liquidity stood at NZ$700 million towards the end of February 2021.

On 18 June, at the time of writing, the shares of Air New Zealand were trading at NZ$1.605, down by 0.93%.

Do Read: AIA, AIR Shares Move up As Quarantine-Free Trans-Tasman Travel Begins

Does AIR pay dividends?

In September 2019, AIR paid a final dividend of 11.0 cps to its shareholders.

However, because of the current financial stress owing to coronavirus, Air New Zealand has not declared any interim dividend for 2021.

Nonetheless, with global economies opening, announcements of various travel bubbles, and the dampening of the COVID-19 effect, the airline is optimistic of regaining its lost sheen.

Comment


Disclaimer

   
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