Air New Zealand stated (17-Sep-2021) following a month of constrained trading it remains unclear how long coronavirus Alert Levels, the suspension of trans-Tasman quarantine free travel and associated travel restrictions will continue, as well as how demand will recover when the restrictions are lifted. However, for so long as the travel restrictions remain in place, the estimated impact on the company’s financial performance is as follows:
- Monthly impact of nationwide New Zealand Level 3 or 4 travel restrictions is approximately NZD45 million (USD31.8 million) to NZD55 million (USD38.9 million), including the benefit of any wage subsidies received;
- Monthly impact of an Auckland only Level 3 or 4 travel restriction, with the rest of New Zealand operating at Level 1 or 2 is approximately NZD25 million (USD17.7 million) to NZD35 million (USD24.8 million), including the benefit of any wage subsidy;
- Monthly impact of suspension of New Zealand to Australia travel is approximately NZD20 million (USD14.1 million) to NZD25 million (USD17.7 million).
Operation of cargo flights is continuing with approximately 50 weekly frequencies and the company is observing strong demand for air travel across regions in New Zealand that are currently under Level 2 restrictions. As advised at the on 26-Aug-2021, the Company has begun to draw
down further on the Crown standby loan facility. The Company has recently requested additional drawdowns on the Facility which, including those drawings, will total NZD435 million (USD307.5 million). Remaining available funds under the Facility are NZD1.1 billion (USD777.7 million).