Tasman closure slams NZ
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.