Air New Zealand has updated its earning guidance for the 2020 financial year and says it expects to post a $120 million loss.
The guidance for the full year to June 30 excludes the impact of fluctuations in foreign currency rates for the month as well as any fuel price changes for the remainder of the period.
The airline says it has slowly restarted the domestic network since the move to alert level 1 , however “revenue and earnings are significantly lower than expected prior to the outbreak of Covid-19”.
“Assuming current exchange rates, a non-cash gain of $70 million is expected to be recognised within other significant items in the 2020 financial year, however this will change if exchange rates move materially before the end of the financial year,” the company says.
The airline is also estimating re-structuring costs, including redundancies, to be between $140 and $160m.
