Air New Zealand raises annual earnings forecast on improved demand

(Reuters) – Air New Zealand Ltd on Friday improved its forecast for fiscal 2022, benefiting from a pick-up in demand following the opening up of domestic and international borders.

New Zealand recently said it would fully reopen its international borders from end-July, and the country welcomed travelers from trans-Tasman neighbor Australia for the first time since mid-2021 in April.

The airline now expects an annual loss before tax and significant items to be less than NZ$750 million ($478.73 million), compared to a prior forecast of less than NZ$800 million.

In May, the carrier said its annual loss could come in better than expected, owing to an improvement in passenger bookings for short haul and international services.

Domestic demand has improved in recent weeks with business-related demand returning to about 90% of pre-COVID levels, the airline said.

Air New Zealand, however, added it remains mindful of uncertain macroeconomic conditions, including COVID-19 led travel restrictions in some parts of the world and high jet fuel prices.

($1 = 1.5667 New Zealand dollars)

(The story refiles to correct to trans-Tasman, from trans-Tasmanian, in paragraph 2.)

(Reporting by Harish Sridharan in Bengaluru; Editing by Krishna Chandra Eluri)