As a result of actions to cut expenditure, Air New Zealand expects its FY21 monthly cash burn to reduce a further -NZ$50-60m, excluding any benefit from passenger revenue.
This suggests to Credit Suisse the cash burn reduces to NZ$100m per month. A labour reduction of -30% has been confirmed.
The broker downgrades to Underperform from Neutral, forecasting material losses in both FY20 and FY21. Target is reduced to NZ$0.84 from NZ$0.95.
Sector: Transportation.
Current Price is $1.25. Target price not assessed.
