AIR - Air NZ.

[winner69]

Paywalled - https://www.nzherald.co.nz/business/...L7XVZJ3Y36DUM/



Looks very grim.

Longer it goes on and the bigger the losses and even more government it becomes more certain that minority shareholders won’t be asked for more cash in capital restructure …but they might be lucky to still own 10% of the airline

[peat]

we are supporting the development and deployment of electric, hybrid and hydrogen aircraft for domestic use.

and losing billions.

disc short.

[X-men]

Loss $440m yet only 50% down from its high...

Market is crazy!

[Beagle]

Given uncertainty surrounding the current national lockdown,
ongoing international travel restrictions and uncertainty regarding
the level of demand as these restrictions lift, Air New Zealand has
suspended 2022 earnings guidance

http://nzx-prod-s7fsd7f98s.s3-websit...956/353176.pdf

Previous indicative guidance was for a FY22 loss of about another $450m...likely to be north of $600m now in my opinion.

Who in their right mind would commit fresh capital to this train wreck ?

All slide rights to future aircraft purchases have been used. I read this as they are already exercising every right they have to defer every new aircraft on order for as long as possible but I also note that this leads them into significant capex spend in the years ahead (e.g. ~ $500m in FY24) with no visibility on how demand might recover.

If this company was to be allowed to slide into receivership I would think that would allow them to walk away from billions of dollars in capex spend for aircraft they clearly don't need. Why should taxpayers be making what ostensibly may amount to philanthropic donations to Boeing ?

[winner69]

Qantas reported a 2.3 billion pre-tax loss

[Waltzing]

"slide into receivership"

alright then its got the moniker as the most dangerous stock today...

But seriously would the government allow this?

[STr]

I best look at ways to cash up my Airpoints before they become vapor. I assume these are a large liability for AirNZ also at the moment

[Snow Leopard]

Still $1B of equity, assuming those airframes,engines & simulators are valued right.

[Waltzing]

its going to stay listed unless nationalised... what's an extra few billion on the RBNZ...

[Beagle]

Qantas reported a 2.3 billion pre-tax loss

And their shares are up ! All the proof you need that the airline industry is absolutely bonkers. "Its easier to stay out of trouble than to get out of later on" Warren Buffet. Pretty sure he's back to disliking airlines after a brief episode of irrationality.