Air New Zealand said Tuesday it had drawn down NZ$110 million (US$72.20 million) of a NZ$900 million government loan facility to help the airline survive the COVID-19 pandemic. The airline reiterated it expected to report a second consecutive annual loss in the financial year ending 30 June 2021 and said it was not able to provide earnings guidance.
The airline said it had around NZ$1 billion of liquidity, comprising NZ$215 million of cash on hand and NZ$790 million remaining on the government loan facility, according to a report from Reuters. The airline forecast it would burn through NZ$65 million to NZ$85 million of cash a month under current conditions.
The New Zealand government owns 52 percent of the airline and has the ability to turn the loan to equity. Airline management said it was talking to the government about its future capital structure and funding needs and the government recently reaffirmed a commitment to maintaining the its majority shareholding in Air New Zealand.
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