Air NZ upgrades outlook

AIR New Zealand this morning advised of an improvement in its expected result for the 12 months to 30 Jun, with the carrier now forecasting that its full year financials will show a loss before tax and other significant items of less than NZ$750 million.

The prediction is NZ$50 million better than the previous forecast on 30 Mar, when CEO Greg Foran predicted an NZ$800 million loss.

“The airline continues to see strong passenger booking activity on short-haul and international services following the opening of the New Zealand border,” an investor update today noted.

“Domestic demand has also improved in recent weeks, with business-related demand returning to approximately 90% of pre-COVID levels.”

The carrier said it remained mindful that the macroeconomic environment continues to be uncertain, with disruptions caused by the impact of COVID variants, continued travel restrictions in some markets, and the ongoing conflict in Ukraine which is contributing to high jet fuel prices.