Macquarie assesses cargo is currently an important part of Air New Zealand’s revenue for FY21 and appears to be maintaining solid volumes and yields.
The timing of the trans-Tasman travel bubble appears increasingly delayed although capacity data signals there is potentially more than 100% of pre-pandemic demand being catered for.
The broker retains an Underperform rating, assessing the stock is priced at pre-pandemic earnings despite the risks. Target is raised to NZ$1.15 from NZ$1.05.
Sector: Transportation.
Current Price is $1.55. Target price not assessed.
