Air New Zealand expects to report a lower full year loss, following a surge in passenger bookings.
Air New Zealand is seeing a strong surge in bookings with border reopenings. Photo: RNZ / Nick Monro
In a trading update, the national carrier said it was now forecasting a loss of no less than $750 million for the year ended June, which is a $50m improvement on previous expectations.
"The airline continues to see strong passenger booking activity on short haul and international services following the opening of the New Zealand border," it said.
"Domestic demand has also improved in recent weeks with business-related demand returning to approximately 90 percent of pre-Covid levels."
The company said it continues to be mindful of the current uncertain macroeconomic environment, with the potential for further disruptions from new Covid variants, subsequent travel restrictions, and the ongoing conflict in Ukraine which was driving up jet fuel prices.
Air New Zealand completed a $2.2 billion refinancing package earlier this year.
In a research note published recently, Forsyth Barr analyst Andy Bowley said the company was firmly in recovery mode, based on April passenger numbers.
He said its estimates suggested that the company's revenue in April was the highest since borders closed in March 2022, and had recovered to about 49 percent of levels seen in 2019.
"We expect further improvements in [monthly passenger] revenue over the coming months as border restrictions continue to ease and [Air New Zealand's] capacity improves."