The Air New Zealand Limited (ASX: AIZ) share price is on the move today, after the airline announced its latest monthly traffic update where it reported a 50.8% drop in passenger traffic in November 2020 compared to November 2019.
The Air New Zealand share price has, however, risen by 2.5% to $1.62 in morning trading, amid a broader rise in the ASX.
Dismal air passenger figures
Air New Zealand reported that it carried a total of 690,00 passengers in November 2020. This compares with 1.4 million passengers it carried in November 2019.
For the financial year to date, which ends on 30 June 2021, Air New Zealand says that it carried 58.2% less passengers than the same period last year.
Its revenue passenger kilometres (RPK) figures also took a big hit, down 85.2% in November versus the corresponding period in 2019, and 87.1% lower in the financial year to date.
RPK is a standard measure of traffic for an airline flight, bus, or train calculated by multiplying the number of revenue-paying passengers aboard the vehicle by the distance travelled.
The airline’s long haul flights naturally took the biggest hit, down by 95.9% in November as international flights are still effectively banned.
Its Tasman flights however, were only down by 28%. This is because since October, New Zealanders have been able to travel to Australia without going into quarantine (except for arrivals in Western Australia), but not the other way around.
About the Air New Zealand share price
The Air New Zealand share price has lost more than 40% this year, as carriers around the word took the full brunt of the coronavirus pandemic travel ban.
As a comparison, the share price of Australia’s own Qantas Airways Limited (ASX: QAN) has dropped 32% in 2020.
The dull performance of the Air New Zealand share price is reflective of its FY20 results, where it reported its first loss in 18 years, The airline reported a loss of $87 million for the full year.
The Air New Zealand share price has a long way to go to reach its 52-week high of $2.94. At today’s price level, the airline commands a market cap of $1.9 billion.
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Motley Fool contributor Eddy Sunarto has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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