Air New Zealand’s monthly cash burn guidance of $65m to $85m suggested the company would have about $400m left of a $900m Crown loan facility it secured at the beginning of the Covid-19 pandemic, they said. The prospect of New Zealand s border restrictions loosening, including a trans-Tasman bubble opening, ahead of mass inoculation appeared “increasingly remote”, they said.
ALDEN WILLIAMS/Stuff
Air New Zealand’s domestic network is operating at close to pre-pandemic levels thanks to New Zealand’s successful Covid-19 response. This would impact the capital needs of Air New Zealand and may result in further “cost base initiatives”.
Auckland Airport’s international passenger volumes have been a fraction of what they were before Covid-19.
Auckland International Airport is expected to post its first loss since listing on the stock market in 1998 due to “a monumental decline” in international passengers as a result of the pandemic. The airport, which reports its 2021 interim results on Thursday, is one of the largest companies on the New Zealand stock exchange with a market capitalisation of $10 billion. But it s been deeply affected by a collapse in international travel as result of Covid-19 border restrictions, and its stock price has fallen $1.40 over the past year to trade at around $7. In August, it posted a $194 million full year profit, down 63 per cent on the prior year.
Its attractive features have not been missed by the market, as the company has enjoyed strong share price performance over an extended period of time, they said. Still, they didn’t view the stock as expensive, raising their target price for the shares to $70 from $62. “Whilst we recognise it s not cheap, we retain an ‘outperform’ rating in light of its growth potential, track record, and high quality attributes,” they said. “Its competitive advantage allows for accelerated market share wins during periods of extreme market uncertainty as was the case during 2020.”
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Mainfreight managing director Don Braid has said the company expects profit this year will be much improved on last year’.
Forsyth Barr says Tourism Holdings faces bumpy journey to recovery
13 Jan, 2021 04:00 AM
3 minutes to read
Tourism Holdings US operation could recover more quickly than in NZ. Photo / Supplied
Aviation, tourism and energy writer for the NZ Heraldgrant.bradley@nzherald.co.nz@gbradleynz
Tourism Holdings (THL) profit downgrade late last year capped a disastrous year for tourism-related companies and THL faces uncertain demand in New Zealand, say analysts at Forsyth Barr. They say that with lower rental demand during the summer peak and fewer vehicle sales than anticipated in New Zealand, the net profit loss in the full year ending June 30 could be as high as $22.4 million. This is a sharp reversal on the $20m profit reported for the 2019-20 financial year.