- Flag carrier airline Air New Zealand (AIZ) has secured another tranche of cargo flight contracts under the NZ Government’s aviation support program
- Under phase two of New Zealand’s International Air Freight Capacity Scheme, Air New Zealand will fly an average of 55 flights per week, in exchange for between $100 million and $145 million in financial aid
- Due to the support from the government, the company expects its full-year revenue from its cargo transport business to out perform last year’s figures
- That said, despite the bolstered cargo transport sales, Air New Zealand still expects to post an annual net loss in 2021
- At the end of trading on Friday, Air New Zealand closed 2.91 per cent up for $1.77 per share
Flag carrier airline Air New Zealand (AIZ) has secured another batch of cargo flight contracts under the NZ Government’s aviation support scheme.
New Zealand’s International Air Freight Capacity Scheme hopes to support the battered aviation industry by supplementing the lack of international commercial flights during the pandemic with government awarded freight contracts.
The government recently initiated phase two of the program, which runs until the end of March 2021 and brought more support for the nation’s flag carrying airline. Under this phase, Air New Zealand will fly an average of 55 flights per week, in exchange for between $100 million and $145 million in government aid.
Due to its necessary reliance on its cargo transport business under the pandemic, the company expects its full-year revenue in this particular sector to out perform its full-year 2020 results. That said, despite the bolstered cargo transport sales, Air New Zealand still expects to post an annual net loss in 2021.
The government has promised to commit more than NZ$600 million (approximately A$571 million) to help prop up the ailing transport sector, and at least NZ$330 (approximately A$285 million) million through the freight award scheme.
The positive news for the airline follows an impressive week’s trading for AIZ shares. News of three potential COVID-19 vaccines before the year’s end has triggered an industry-wide market boom for the airline sector, as investors rush back hoping for a shorter-than-expected downturn in international travel.
Consequently, AIZ shares have bumped ten per cent this month, partially erasing the staggering 50 per cent drop in March, following the onset of COVID-19 and its resulting travel bans.
At the end of trading on Friday, Air New Zealand closed 2.91 per cent up for $1.77 per share.