Air NZ Postpones 787 Deliveries, Forecasts Record Record Yearly Loss | New
Air New Zealand will delay taking delivery of more Boeing 787s by at least a year, as the carrier expects to dip deeper into the red for its annual financial results.
In a profit forecast released on June 18, the carrier expects pre-tax pre-tax losses on major items to not exceed NZ $ 450 million ($ 315 million) – fiscal year 2021 of the carrier ends June 30. This compares to the loss of NZ $ 87 million she suffered the previous year – her first loss in 18 years.
He also expects a dismal 2022 fiscal year, with losses comparable to 2021.
Regarding aircraft postponements, Air New Zealand indicates that the first of the eight 787s it ordered in 2019 was to be delivered from July 2022, but these were delayed by a year.
“The airline also retains the option of using a number of other contractual deferral rights on other aircraft due for delivery from 2024,” says Air New Zealand, which has a 787-9 and seven 787-10 on order.
The latest development follows the carrier’s announcement in February that it was considering “possibilities to adjust” its widebody fleet, including postponing deliveries of 787s and cutting a number of 777-300ERs.
The wide-body postponements come as the airline expects “no significant recovery in long-haul demand” in the coming year and intends to double its domestic air transport business in the near future. term.
In its earnings forecast, Air New Zealand says a “strong and sustained” recovery in demand for domestic travel – as well as its freight business – has helped mitigate the impact of the coronavirus pandemic.
Long-haul international demand remains in the doldrums – with traffic only 5% of pre-pandemic levels. New Zealand has closed its borders to curb the spread of the coronavirus.
“National capacity is now at around 90% of pre-Covid levels, and business demand continues to show strong signs of recovery, averaging around 80% of historical levels over the past three months. It is important to note that our national load factors also follow in a similar range, ”reveals the carrier Star Alliance.
To that end, airline chief Greg Foran said the carrier would “further strengthen” its “core domestic business”, although he did not provide further details.
The airline also notes that the travel bubble deal with Australia – first launched in April – has helped boost revenues. Traffic levels on its Trans-Tasman network are currently at 70% of pre-pandemic levels.
On freight, Air New Zealand says the government’s program to maintain international air connectivity – where it operates about 30 international freight flights per week – has helped boost its revenue.
The airline says, “Government financial support for air cargo support programs is expected to contribute between NZ $ 320 million and NZD 340 million to total cargo revenues.
Still, Air New Zealand has warned its immediate future remains uncertain, citing the lack of clarity in reopening international borders, as well as progress on a global vaccination campaign.
He warns: “While demand on the airline’s domestic and short-haul networks is currently showing positive dynamics, if there are any further restrictions or lockdowns at the borders, there is no certainty that this momentum will continue. ”
Although he notes that demand for long-haul travel will remain weak in the near term, he has increased the potential for a gradual reopening of borders in early 2022.
“The underlying operational performance is expected to improve gradually over the next fiscal year, but the reopening of international borders, fuel and currency fluctuations, as well as the recovery in demand for long-haul travel remain highly uncertain. All of these factors are important for the financial performance of the airline, ”explains the carrier.