Air New Zealand CEO says does not expect to tap market for more liquidity

Air New Zealand CEO Greg Foran has indicated that the airline does not anticipate tapping the market for additional liquidity in the near term, according to recent statements. This comes amid ongoing financial challenges driven by the lingering effects of the global pandemic and the uncertainty surrounding international travel recovery. Foran emphasized the airline’s focus on managing its existing liquidity and reducing operational costs to navigate the current environment.

As of August 2020, Air New Zealand held approximately $1.1 billion in short-term liquidity, including a $900 million standby loan facility from the New Zealand government, which had not yet been utilized. The airline has taken decisive steps to reduce its monthly cash burn, which dropped from $175 million in April to $85 million in July. Management expects the average monthly cash burn to remain between $65 million and $85 million while international travel restrictions persist.

Foran also highlighted the airline’s strategic review and cost-cutting measures, including deferring capital expenditures and restructuring operations to ensure long-term competitiveness. The airline has not declared a final dividend for 2020 due to ongoing financial pressures. While Air New Zealand is not providing specific earnings guidance for 2021, all modeled scenarios suggest the airline will continue to operate at a loss in the coming year.