Air NZ reports bottom line loss of NZ$376m for half year
Air New Zealand today reported a bottom line December half year loss of $376.5 million.
*** Singapore Airlines will have to record a loss of NZ$18.8 to their books for financial year ending 31st March 2002. ***
The 82 per cent Government owned airline posted an operating loss of $75.6 million and unusual losses of $300.9 million.
In September, the airline posted a New Zealand record $1.4 billion annual loss in September following the writedown of its Ansett investment. That prompted an $885 million Government bailout.
The company, which will not be paying a dividend, said it had positive cash flow from continuing operations of $44.9 million.
New chief executive Ralph Norris said the past six months had been "an extremely challenging six months for the global airline industry and not the least for Air New Zealand".
He said the terrorist attacks on the United States and the subsequent retaliatory actions continued to have a major impact on demand for international air travel.
Total operating revenue fell to $2.58 billion from $4.31 billion but that was mainly due to the cessation of contributions from Ansett.
The loss per share was 50 cents compared with earnings in the year ago period of 0.6 cents.
Finance Minister Michael Cullen commented that the result was "broadly in line with expectations".
"The Government insisted as a condition of last year's rescue package that the company develop a credible plan to return to financial health.
"That strategy is still only in the very early stages of implementation and will take a little while to deliver results," Dr Cullen said.
Air NZ shares were steady on 34 cents shortly after the result.
The airline said that on an operational level available seat kilometres fell 1.9 per cent to 15.4 billion and revenue passenger kilometres (RPKs) fell 4.7 per cent to 10.8 billion.