By Stephen Wright
Air New Zealand’s annual loss exploded due to pandemic travel disruptions and the airline warned of headwinds to its recovery, including the risk of a global recession, volatile jet fuel prices and a high inflation.
The carrier, which is half-owned by the New Zealand government, said its loss before one-time items and taxes increased to NZ$725 million ($449 million) for the year ended June 30. Its loss the previous year was NZ$444 million.
New Zealand only fully reopened its border to foreign travelers in July. Air New Zealand received a government-backed NZ$2.2 billion recapitalization earlier this year.
The carrier said it expects its financial performance to improve significantly in the current fiscal year, but gave no specific revenue or profit forecast.
He said he faced uncertainty due to volatile jet fuel prices, the possibility of a global recession and other economic factors, including inflationary pressures on operating costs.
The airline expects its flight capacity for the current fiscal year to be between 75 and 80 percent of pre-pandemic levels.
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