Air New Zealand has reported a net loss after taxation of $591 million for the 2022 financial year, despite its operating revenue lifting by 9% to $2.7 billion.
The $591 million net loss is compared to a $292 million net loss in the 2021 financial year.
In a statement, the national carrier said they had experienced "greater than expected" demand for travel in the last quarter, but the airline's operating revenue was "significantly impacted by pandemic related travel restrictions".
"Cargo and domestic revenues helped lift overall revenue by 9 per cent, however high fuel prices and reduced flying over much of the year resulted in a loss for the period."
In recent weeks, energy companies, Meridian, Mercury And Genesis have shown a combined increase in net profit of $1.3 billion. (Source: 1News)
Expenses grew from $2.18 billion to $2.738 billion.
Chief executive Greg Foran described the airline as in the "revive" phase of a "survive, revive, thrive" journey, and said: "As we've been seeing overseas, travel demand is much stronger than anyone anticipated. But we're operating in a very tight labour market with high fuel prices, tough economic conditions and the highest levels of employee sickness in more than a decade."
"For customers, we've been focused on restoring services, maintaining a choice of fares and launching innovations to improve their journey with us.
"For our amazing staff we have provided one-off awards to acknowledge their continued extra mahi, and for our communities we've been obsessed with operational performance, which drives the reliable services they depend on."
The result is Air New Zealand's third annual loss in a row, after 18 years of growth ended with the airline's 2020 results.
But looking ahead to 2023, "a significant improvement in financial performance relative to financial year 2022" is anticipated.
Air New Zealand Chair Dame Therese Walsh said the airline not only managed considerable challenges this year but "also introduced changes that will deliver improved services to customers and made progress on their long-term sustainability goals".
READ MORE: Air NZ plane returns from 'deep storage' in Mojave Desert
"The airline's continued ability to step carefully through an ongoing pandemic while looking beyond the horizon is becoming a core capability."
And the airline expects that flying capacity for the 2023 financial year will be around 75% - 80% of pre-Covid levels.
But, they were unable to provide specific earnings guidance for the year ahead, citing "the degree of uncertainty regarding volatility in jet fuel prices, the risk of a global recession, and other macroeconomic factors including inflationary pressures on costs".
"The Board does not expect to consider payment of dividends before the airline's earnings substantially recover, and in the context of a supportive and sustained broader economic environment and recovery."
SHARE ME