Aviation
Commercial /
Oceania
Optimism
After substantial losses in 2021, Air New Zealand expects better days
Rafael Ramos
2/24/2022
Air New Zealand announced a legal loss of $254.6 million in the second half of 2021, down from a loss of $711 million in the first half. The company's operating revenue was 9% lower, as there was a 26% decline in passenger revenue. This is due to new national restrictions, with the 107-day lockdown in Auckland.
Despite the losses, the periods of isolation were extremely challenging for the company, which suspended flights, replanned routes and laid off employees to maintain itself. Airline CEO Greg Foran said on Thursday that he is excited for the coming days and months when international travel returns.
“I couldn't be more proud of our Air New Zealand whanau for what they've achieved this year so far,” said the CEO.
Air New Zealand normally has two-thirds of its revenue from international operations, which is precisely the demand that is most repressed – in January 2021 there were only 23,000 passengers transported, compared to 537,000 in January 2019.
The opening of borders should start at the end of this month. However, the complete removal of restrictions is still unclear, so it creates uncertainty in the airline.
"Self-isolation restrictions are expected to continue to have a substantial adverse impact on international demand in the second half of fiscal 2022 and for as long as these restrictions exist," the airline said in a statement.
The company expects a loss of $541.7 million through June 30, 2022, the end of the 2022 financial year.
"We are bringing back approximately 250 cabin crew and pilots and we have brought back one of our Boeing 777-300s to do some heavy lifting. Looking towards the end of this year, we will be increasing more passenger flights to North America and we look forward to starting our direct service to New York City,” said the CEO.
The company's fleet also underwent some changes, with the delivery of an A321neo postponed from 2022 to 2023 and a 787-9 Dreamliner from 2025 to 2027, although the company continues to receive the 4 Dreamliners that were ordered from Boeing. In addition, existing Boeing 787s in the company's fleet must undergo an interior retrofit program.
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Rafael Ramos
Aviation enthusiast from an early age, he had his first contacts with the area developing that good old habit of spending dozens of hours in front of the screens of Micrsoft Flight Simulator and other simulators. With a solid background in various technological areas, including engineering and chemistry, Rafael has rejoined aviation as editor and author of articles and materials on our portal, providing invaluable help to the dynamics and expansion of the website and the aeronautical community, bringing us the news and updates so indispensable for us to remain current in our area of operation.
   
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