Air New Zealand swings to $NZ454m loss but domestic flying bounces back

Air New Zealand has swung to a $NZ454 million ($416 million) net loss in the year to June 30 after being crushed by travel restrictions in response to the COVID-19 pandemic.

The loss, which comes after a $NZ276 million profit a year earlier, included a $NZ338 million write-down to the value of the airline’s long-haul Boeing 777 fleet, which will remain grounded for the foreseeable future.

Air New Zealand has swung to a loss due to the coronavirus pandemic.Credit:Bloomberg

“It is clear that COVID-19 is unlike any other crisis the aviation industry has experienced,” Air New Zealand’s chief executive officer Greg Foran said in a statement.

The airline reported an underlying loss before significant items and tax of $NZ87 million, compared to a profit of $NZ387 million in the prior year, reflecting a 74 per cent drop in passenger revenue from April to the end of June.

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