Auckland International Airport is expected to make a loss of up to $90 million as of June 30, flight numbers falling 80 per cent per day amid the Covid-19 pandemic.
The losses largely stem from write-offs and capital expenditure termination costs over the pandemic, Auckland Airport announced today in a statement. Redundancies have also contributed to the loss.
Ninety contractors have been released, with the airport reducing its workforce by 25 per cent.
More job losses in the infrastructure and operations departments were expected.
In a statement, chief executive Adrian Littlewood said protecting the health and safety of everyone working and travelling through the airport remained the organisation’s key priority despite the "extraordinarily challenging times for all of us in the New Zealand tourism industry."
International passenger numbers are now averaging 800 per day at Auckland Airport - less than five per cent of the figures from six months ago, he said.
Airlines have also been "deeply impacted," with the number of carriers operating in the country falling from 29 to just 11.
Daily flight numbers have also significantly reduced, after falling by 80 per cent to just 100 flights per day. The flights are consist of domestic, cargo and repatriation services.
On March 16, Auckland Airport suspended its underlying earnings guidance for the 2019/20 financial year due to the significant uncertainty around the duration and impact of Covid-19 travel restrictions on the business.
A comprehensive plan was then put in place to bolster liquidity, reduce operating costs and suspend or terminate capital expenditure, including a 20 per cent reduction in remuneration for directors and executives.
"We are a resilient business, but this is a global shock to aviation the likes of which we’ve never seen, and our organisation continues to be materially impacted."