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- Air New Zealand (AIZ) has joined Qantas in slashing its capacity of flights to Asia to mitigate the damage done by the coronavirus
- The airline revealed on Monday that it is bracing to lose up to AU$72 million in revenue due to reduced business
- To curb costs, Air New Zealand will slash flights to Asia by 17 per cent — joining its existing suspension of flights to Shanghai
- The airline is expected to release its 2020 Interim Results this week on February 27th as well
- Shares in the company dropped 5.34 per cent on Monday — falling to $2.48 per share
Air New Zealand (AIZ) has joined the Coronavirus conversation, saying the global health hurdle will affect its business.
In an announcement released on Monday, Air New Zealand management echoed concerns and predictions shared by other airlines, admitting that revenue for the remainder of the year is expected to be impacted by the Coronavirus.
The global health scare implicated by the Coronavirus has impacted several air carriers to see less travel to and from Asia. As a result, Air New Zealand is expecting to take a hit of up to A$72 million in revenue.
The company has assured that it is taking immediate steps to mitigate the impacts across the Asian and domestic markets.
“Air New Zealand is a resilient business and we have demonstrated the ability time and again to respond quickly to changing market conditions,” Chief Executive Greg Foran said.
“We have a highly capable and experienced senior leadership team who have dealt with challenges such as this before and I am confident that we will effectively navigate our way through this.”
In a bid to save business in the face of softened air travel, Air New Zealand has said it will invest in driving demand across Australia and in the domestic market to make up the losses.
The New Zealand company will also be slashing its capacity of flights to Asia much like Qantas — by 17 per cent. This decision joins Air New Zealand’s already suspended flights to Shanghai and reduced flights to Hong Kong.
Much like Qantas, the airline carrier has been grateful for reduced market prices for jet fuel as of late — helping to carry the burden of lowered business.
Despite the pledged steps taken, the airline reiterated that overall earnings for the 2020 Financial Year will still be ‘adversely impacted’.
The company will be releasing its interim results this week on February 27th.
Shares in the billion dollar company dropped 5.34 per cent by market close on Monday — going to bed at a price of $2.48 per share.
