WELLINGTON, New Zealand — Air New Zealand Ltd. said the government has increased its financial support due to uncertainty about the travel industry’s recovery from the pandemic.
Overall financial support has increased to 2.0 billion New Zealand dollars ($1.35 billion) from NZ$1.5 billion, the airline said Tuesday.
Air New Zealand, which is half owned by the New Zealand government, said it is still aiming for an ordinary equity capital raising in the first quarter of next year.
It said the new arrangements will ensure it has enough cash to continue operating if its capital raising is delayed.
Under the new support agreement, the airline can raise cash by issuing up to NZ$1.0 billion in non-voting shares to the government once its borrowings from the government reach NZ$850 million.
The limit on the government credit facility has been reduced to NZ$1.0 billion from NZ$1.5 billion and its maturity extended to January 2026 from September 2023.