Third straight annual profit loss for Air New Zealand

The air carrier expects 75 to 80 per cent of the pre-pandemic passenger capacity to be restored next year only.

Air New Zealand lost $450m in 2022, while the huge financial loss is attributed to pandemic-related lockdowns, as well as border closures.

Nevertheless, the company is optimistic, as it anticipates flying capacity to increase in the near future. According to forecasts, 75-80 per cent of pre-pandemic levels will be reached for the 2023 financial year, as starting May the country has ended border restrictions following the Covid-19 pandemic and currently allows tourists from more than 50 countries to enter its territory.

Domestic air travel is also on an ascending path, while more and more New Zealanders slowly return to pre-pandemic travelling habits.

According to a recent statement by Air New Zealand, the airline is expected to run its both domestic and international schedules at as much as 90 per cent of the pre-pandemic capacity during the following six months.

Nevertheless, financial forecasts for the next year are yet to be announced, as the economy struggles due to inflation, fuel prices and overall high cost of living.

Air New Zealand’s CEO Greg Foran explained:

“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.

“Our rehiring efforts and training capability have been excellent, as has work to get our Boeing 777-300ER aircraft back flying again, but the experience for some of our customers and the impact on our front-line staff this winter has been unacceptable, so we’ve adapted yet again.”

Despite New Zealand had been hit by the highly infectious Omicron variant in December 2021, the country accounted for the lowest death tolls worldwide. However, almost all the industries in the country have been affected by the pandemic-related measures and New Zealanders are currently struggling so that their living conditions and economy bounce back to their normal levels.

 

Source: aljazeera.com