Air New Zealand reports first loss in 18 years

Air New Zealand has reported a loss before other significant items and taxation of NZ$87 million for the 2020 financial year. It is the airline’s first reported loss in 18 years.

The airline is set to agree to a 900 million New Zealand dollar government loan shortly. The credit should provide some extra financial strength for the company. It will be repaid with seven to nine percent interest and gives the government the right to request repayment after six months by raising capital or converting the loan into equity.

“The 2020 financial year has been a year of stark contrast. Air New Zealand had a solid start to the year and was focused on driving profitable growth into the second half. We were also preparing to launch the first ever non-stop link between New Zealand and New York and had announced several exciting innovations in the customer experience space. 
Now, nearly six months following the declaration of a global pandemic, the $87 million loss we are reporting today, our first loss in 18 years, reflects the quick and severe impact Covid-19 has had on our business.”

Dame Therese Walsh, Air New Zealand Chairman