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MARCH 2022

Week 13


Air New Zealand unveils US$1.5 billion recapitalisation plan, issues improved earnings outlook

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March 31st 2022

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Air New Zealand (AirNZ) has announced a NZ$2.2 billion (US$1.5 billion) recapitalisation package. Read More » It comprises a rights offer to existing shareholders intended to raise NZ$1.2 billion, the issuing of redeemable shares to the New Zealand government to secure NZ$600 million and a new unsecured four-year NZ$400 million loan also with the government. In addition, NZ$850 million of the funds raised will repay an existing government loan and NZ$950 million will be used to strengthen the carrier’s balance sheet, help maintain the airline’s investment grade credit rating and support AirNZ strategic priorities. The NZ$400 million loan will be undrawn. "This is an important step in refuelling for our recovery," AirNZ chair, Dame Therese Walsh, said. The Star Alliance member has upgraded its earnings guidance for the 2021-2022 fiscal year amid "some benefits from the limited period of sales" after the New Zealand government brought forward eased travel restrictions for inbound passengers to the country. AirNZ now forecasts a full-year loss, before taxation and other significant items, of less than NZ$800 million, an improvement from its previous estimate of more than NZ$800 million. A large degree of uncertainty remained [for air travel demand] and more losses are expected in the near term, the carrier said.

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