Air New Zealand expects an underlying pre-tax loss of up to -NZ$120m in FY20. There was no update on current liquidity.
In the absence of a material capital injection Credit Suisse expects the airline would need to access the Crown loan facility early in FY21.
Significant one-off costs have occurred of NZ$600m. Importantly, under the re-based cost structure, the broker expects Air NZ will remain loss-making until its long-haul network re-opens, which may not be until FY22.
Underperform. Target is raised to NZ$0.85 from NZ$0.84.
Sector: Transportation.
Current Price is $1.45. Target price not assessed.
