Travel Daily

Tasman closure slams NZ

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AIR New Zealand’s bottom line is being hit by about NZ$25 million a month due to the current suspension of the transTasma­n bubble, with the carrier providing details of the financial impact of ongoing restrictio­ns.

NZ’s earnings guidance was suspended on 26 Aug due to the uncertaint­y associated with the introducti­on of a nationwide Alert Level 4 in NZ, and a lack of clarity about when the trans-Tasman bubble might reopen.

The monthly impact of nationwide NZ Level 3 or 4 travel restrictio­ns is up to NZ$55 million, including the benefit of any wage subsidies received.

If domestic restrictio­ns apply in Auckland only at Level 3 or

Level 4, the estimated impact is NZ$25m-$35m a month, the carrier revealed.

NZ said it was currently observing strong demand for air travel across regions in New Zealand that are currently under Level 2 restrictio­ns.

The airline has now drawn down NZ$435 million of its government­backed standby loan facility (TD 20 Mar 2020), with just over $1 billion additional headroom available in the facility.

The NZ Govt this morning said the trans-Tasman quarantine-free bubble would remain suspended for a further eight weeks.

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