Air New Zealand is expecting to post a $120 million loss during the 2020 financial year amid the coronavirus pandemic, according to a new report.
It comes after the national carrier disclosed to the market on March 9 that it had suspended its earnings guidance for this financial year due to the "significant uncertainty surrounding the duration, scale and impact of the Covid-19 pandemic".
In its NZX report , the airline said while it was able to restart its domestic network under Alert Level 1, revenue and earnings from the flights are "significantly lower than expected" than before the Covid-19 outbreak.
"As the company nears the end of its financial year on 30 June 2020, it is expecting to report an underlying loss before other significant items and taxation of up to $120 million for the 2020 financial year," the report read.
The flights will allow customers to again travel in and out of regions within the same day. (Source: Other)
The earnings guidance does not include the impact of fluctuations in foreign currency rates for the month of June or fuel price changes for the remainder of the period.
Several other significant items are expected to impact the 2020 financial results in addition to the $120 million underlying loss, including a $70m non-cash gain on unhedged foreign currency debt and a $21 million gain following the sale of airport slots.
Other significant items included $140 million to $160 million in reorganisation costs and a $350 to $450 million non-cash charge for aircraft impairment.
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