Air NZ chief executive Greg Foran told Checkpoint July was the company's best July its domestic arm has ever had, despite announcing losses for the year today.
Photo: Supplied / Air NZ / Bruce Jarvis
"I think you can understand why it's just so difficult to predict," Foran said, and noted trans-Tasman and Rarotonga flights were going strong until the lockdown began.
"Domestic was very strong. July was the best July that we've ever had. Now of course we're in a completely different and difficult situation."
"I think you can understand why it's just so difficult to predict." - Greg Foran, Air NZ
He said Air NZ has not drawn more from its $1.5 billion government loan since February.
"We've got over a billion dollars' worth of liquidity thanks to the Crown loan, and we'll just have to see how it how it plays out."
The company reported a $289m loss for the year ended June, reduced from last year's loss of $454m, and their revenue had dropped nearly in half to $2.52bn from $4.84bn.
Passenger numbers were down more than a third on the previous year with most now on domestic service.
The one growth area had been air freight, which had significant growth supported by $333m worth of government subsidies. Overall government support to the airline was $448m for the year through various industry and wage support schemes.
He said Air NZ has been rehearsing for a situation where Auckland may still be at level 4 lockdown while the rest of NZ is at a lower level.
"It's a wonderful piece of network scheduling... but we can do it."
Air NZ has also applied for the wage subsidy, and Foran said they're looking at asking for about $5 million per week.
"We're a high-cost business. Airlines tend to be, a lot of fixed costs, so we'll do our best, but we'll just see how we work through over the next couple of months."
Regarding a crew member who recently tested positive for the Delta variant of Covid-19, Foran said the rules for cabin crew are still working.
Crew members are fully vaccinated, and do not have to isolate if returning on a flight to NZ. They do have to be tested in the week of returning.
"We worked pretty closely with the Ministry of Health on those and I think that over the last period of time, we've only had four crew that have contracted Covid-19.
"This I believe is the first one that's had Delta."
The case has not spread to anyone else, he said.
Foran said it is not just good luck that Air NZ has only had four Covid-19 cases among its crew members.
"When you consider all the flights we've done I don't think that's luck at all. I think it's good management. I think it's very good adherence to the policy."