Air New Zealand’s loss in the first half is almost double

The carrier’s primary loss before tax widened to NZ$367 million in the six months to December 31 from NZ$186 million in the previous year.

“The airline typically derives two-thirds of its revenue from its international passenger network, and a significant portion of that network has been effectively shut down for most of the first half,” CEO Greg Foran said in a statement.

Air New Zealand, which posted a loss of NZ$440 million for 2021, said Thursday it plans to raise funds by the end of March or soon after to replace NZ$2 billion in cash from its major shareholder, New Zealand. Government.

It said the airline on Wednesday withdrew NZ$760 million from a government loan.

The carrier’s domestic business was hit hard in the first half of its shutdown in Auckland, the country’s largest city, as international borders remained closed.

The government has announced plans for a gradual opening of borders this year, but travel agencies say rules requiring self-isolation on arrival must be scrapped to revive the faltering tourism sector.

Air New Zealand added that there remains a “significant degree of uncertainty” about the impact of the Omicron variable on domestic travel demand over the remainder of the financial year.

(1 dollar = 1.4775 New Zealand dollars)