Air NZ suspends guidance

AIR New Zealand has withdrawn its earlier profit guidance for the year to 30 Jun, with CEO Greg Foran this morning saying “it is increasingly clear that COVID-19 has created an unprecedented situation and it is difficult to predict future demand patterns”.

He said over the last week NZ had seen additional softness in demand, driven by the further spread of coronavirus to countries outside of China.

In response the carrier has implemented further capacity cuts, including extending the suspension of its Auckland-Shanghai flights until the end of Apr and additional consolidation of services across its Tasman, Pacific Islands and domestic networks.

A host of cost-saving measures are being put in place, and Foran has agreed to reduce his base pay of NZ$1.65 million by about 15% (NZ$250,000) and the airline’s Executive Team has agreed to extend the salary freeze that has been in place since last May.

No new recruits are being taken on board for non-critical roles, and operational staff are being given the option to take unpaid leave in addition to managing annual leave balances.

“Air NZ is a strong and resilient business operated by a worldclass team with deep experience, having navigated prior shocks to our business and industry.

“While we have already made swift adjustments to our operations, we are prepared to take further actions to address the ongoing demand impact of COVID-19,” Foran said.