March 8, 2020 / 8:46 PM / in 21 days

BRIEF-Air New Zealand Suspends 2020 Earnings Guidance

March 9 (Reuters) - Air New Zealand Ltd:

* AIR NEW ZEALAND SUSPENDS 2020 EARNINGS GUIDANCE

* WITHDRAWING FY 2020 EARNINGS GUIDANCE ISSUED TO MARKET ON 24 FEB & RECONFIRMED AT ITS INTERIM RESULTS ANNOUNCEMENT ON 27 FEB

* DUE TO INCREASED UNCERTAINTY SURROUNDING COVID-19 OUTBREAK, CO WITHDRAWING FULL YEAR 2020 EARNINGS GUIDANCE

* TAKEN STEPS TO MITIGATE IMPACT OF REDUCED DEMAND RESULTING FROM COVID-19

* AIR NEW ZEALAND HAS REDUCED TOTAL OVERALL NETWORK CAPACITY BY ABOUT 10 PERCENT SINCE OUTBREAK OF COVID-19 STARTED

* AIR NEW ZEALAND HAS REDUCED TOTAL CAPACITY INTO ASIA BY 26 PERCENT

* CEO VOLUNTARILY OFFERED TO REDUCE HIS BASE PAY OF $1.65 MILLION BY ABOUT 15%

* CHIEF EXECUTIVE OFFICER GREG FORAN HAS VOLUNTARILY OFFERED TO REDUCE HIS BASE PAY OF $1.65 MILLION BY APPROXIMATELY 15%

* IMPLEMENTED A HIRING FREEZE FOR ALL ROLES THAT ARE NON-CRITICAL AND WILL OFFER OPERATIONAL STAFF OPTION TO TAKE UNPAID LEAVE

* BELIEVES THAT COVID-19 FINANCIAL IMPACT IS LIKELY TO BE MORE SIGNIFICANT THAN PREVIOUSLY ESTIMATED

* OVER COURSE OF LAST WEEK AIRLINE HAS SEEN ADDITIONAL SOFTNESS IN DEMAND WITH A DECLINE IN BOOKINGS ACROSS ITS NETWORK

* FURTHER SPREAD OF COVID-19 TO COUNTRIES OUTSIDE OF CHINA, INCLUDING NEW ZEALAND, HAS DRIVEN A DOWNWARD SHIFT IN DEMAND

* IT IS INCREASINGLY CLEAR THAT COVID-19 HAS CREATED AN UNPRECEDENTED SITUATION AND IT IS DIFFICULT TO PREDICT FUTURE DEMAND PATTERNS

* OVER COURSE OF LAST WEEK AIRLINE HAS SEEN ADDITIONAL SOFTNESS IN DEMAND WITH A DECLINE IN BOOKINGS ACROSS ITS NETWORK Source text for Eikon: Further company coverage:

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