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Date : 06/10/2022

Air New Zealand Limited (ASX: AIZ) Shares are Gearing Up for Post Pandemic Recovery

Air New Zealand Limited (ASX: AIZ) offers ASX-listed airline shares, and the company operates in New Zealand, Australia, the Pacific Islands, the United Kingdom, Europe, Asia, and the United States. The airline transports both passengers and cargo.

As of June 30, 2022, the company operated a fleet of 7 Boeing 777s, 14 Boeing 787s, 31 Airbus A320s, 29 ATR 72s, and 23 Bombardier Q300s. The corporation was established in 1940 and now maintains its headquarters in Auckland, New Zealand.

The price for AIZ shares has been holding its own against the downturn, and investors are keeping a close eye on the stock.

Air New Zealand ASX AIZ: FY22 Financial Analysis

Air New Zealand Limited (ASX: AIZ) stock is trading at $0.62 and has gained around 4% in the past month. The current market cap of the company is approximately 2.37 Billion NZD.

Air New Zealand ASX AIZ shares

  1. FY22 revenue was $2.7 billion gaining more than 8.71% YoY.
  2. Net loss was around $591 million, increasing 102% YoY.
  3. EPS is announced to be $0.28.
  4. The EBITDA of the company in FY22 was ($340 million).
  5. At the end of FY22, the company had cash and cash equivalents of $1.79 billion, increasing 574% YoY.

AIZ – A Recapitalisation and the Bear Market Saved the Day

For most of the pandemic, the price for ASX: AIZ shares flip-flopped between 80 cents and $1.10. To keep its investment grade credit rating and start gearing up for a post pandemic recovery, the firm had to raise a lot of equity capital in March 2022 as part of a comprehensive NZ$2.2bn recapitalisation programme.

The huge capital raising doubled the number of stocks in circulation, resulting in dilution that weighed on the share price. The bear market exacerbated this decline and reached a bottom of roughly 50 cents in June 2022.

Air New Zealand Limited (ASX: AIZ) shares is back over 60 cents thanks to the bear market recovery that began in July and the revival of interest in travel-related subjects. Shares have been upward for over three months post pandemic, and AIZ’s recent optimistic earnings estimate for 1HY23 has just added fuel to the fire.


ASX: AIZ – Post Pandemic Situation in New Zealand

As of July 31, 2022, New Zealand welcomed citizens and nationals of all nations. Air New Zealand Limited revived its mothballed planes and started gearing up in reopening its offshore sales offices in response to the pent-up demand. It resumed service to most of its overseas destinations. AIZ also began nonstop service to New York in September, whereas Qantas has just announced plans for 2025.


AIZ: Enhancements in Network Utilization Persist

Domestic network bookings are at roughly 105% of pre-pandemic levels, while overseas network bookings are around 75%. There has been an uptick in corporate reservations. AIZ anticipates that FY23 capacity utilisation will be between 75% and 80% of pre-pandemic levels.

The $2.2 billion recapitalisation successfully restored the firm’s balance sheet and liquidity indicators. It provided the necessary capital to begin the company’s recovery process post pandemic.


ASX: AIZ – FY23 Outlook is Promising!

The airline predicts its first-half earnings forecast will be between $200 million and $275 million in 2023. But the company warns that it cannot offer a full-year forecast due to the unpredictability of jet fuel costs, global recessionary threats, and inflation.

Analyst consensus indicates an EV/EBITDA multiple of 4.0x for FY23 and 3.7x for FY24 for Air New Zealand ASX shares, with diluted EPS of $$0.4 in 2023. At its current share price, Air New Zealand has a forward P/E multiple of 16x.

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