Air New Zealand suspends cash burn guidance, draws down loan

Oct 28 (Reuters) - Air New Zealand Ltd said on Thursday it had suspended its cash burn guidance due to uncertainty about domestic COVID-19 alert levels and had drawn down another NZ$105 million ($75.22 million) from a government debt facility.

The airline said it was operating around 40% of its domestic network given tough travel restrictions in the country’s largest city, Auckland.

Air New Zealand last month said it was burning through around NZ$25 million to NZ$35 million of cash a month in the domestic market. The closure of a quarantine-free travel bubble with Australia had led to another NZ$20 million to NZ$25 million a month in cash burn, it said at the time. ($1 = 1.3959 New Zealand dollars) (Reporting by Jamie Freed in Sydney; Editing by Himani Sarkar)