Air New Zealand saw greater than expected demand for travel in the last quarter while managing rising costs amid the ongoing pandemic.
The airline reported a pre-tax loss of NZ$725 million (£380.7 million) for the 2022 financial year to June.
Although the financial year ended strongly following the phased reopening of New Zealand’s international borders from March, the airline’s operating revenue of NZ$2.7 billion was “significantly impacted” by pandemic-related travel restrictions.
The carrier recorded a “very strong” recovery in bookings and revenues when travel restrictions began to be lifted.
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“This trend continues, with high booking levels through July and August. Corporate bookings are also encouraging and are trending closely towards pre-Covid levels,” the airline said.
Chief executive Greg Foran referred to the airline’s mid-August schedule changes, which reduced seats by 1.5% through to the end of March 2023, as another example of doing the right thing for stakeholders.
“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,” he said.
“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.
“Having adjusted our schedule to provide customers with increased surety over their travel plans for the coming spring and summer, I am hugely appreciative of the work Air New Zealand has done to deliver more than 25,000 flights across June and July alone.”
A NZ$2.2 billion recapitalisation completed in May allowed thousands of shareholders to take part in “refuelling the airline for success,” said chair Dame Therese Walsh.
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