Air New Zealand is reporting a loss of $725 million for its 2022 financial year result but grew revenue with strong demand in airfreight.
The result compares to a $444m loss in the year prior before other significant items and taxation. Operating revenue was up 9% to $2.7 billion, driven by cargo performance. Cargo revenue was up 32% to $1 billion.
The airline says it was a year of “ongoing twists and turns” and in the last quarter experienced greater than expected demand for travel, while managing rising costs and an ongoing pandemic.
Although the financial year ended strongly following the phased reopening of New Zealand’s borders from March, the company’s operating revenue was significantly impacted by pandemic related travel restrictions, it says.
Chief executive Greg Foran says cargo revenue continues to be a major contributor to the company’s performance.
Additional flying under the New Zealand and Australian government airfreight schemes contributed $403 million of that revenue.
With borders now largely reopened, the Australian scheme has ended, and the New Zealand scheme is tapering off and will cease by the end of March 2023.
Foran says the current environment is one of strong bookings despite ongoing challenges.
When travel restrictions began to lift in March the company recorded “a very strong” recovery in bookings and revenues. This trend continues, with high booking levels through July and August. Corporate bookings are also encouraging and are trending closely towards pre-COVID levels, he says.
In April the company announced the ‘Flight NZ0’ programme to work towards net zero carbon emissions by 2050. It was the second airline globally to announce an interim science-based target to 2030 with work underway on sustainable aviation fuel and zero emissions aircraft technology.
Chair Dame Therese Walsh acknowledged the support the airline received from its shareholders over the course of a challenging two-year period.
“From the Crown loan provided in the early days of the pandemic, to the airfreight support scheme that helped us keep connected to key export markets, to the $2.2 billion recapitalisation completed in May which allowed thousands of shareholders to take part in refuelling the airline for success. We have had significant support from all our shareholders and for that we are truly grateful,” she says.
