Air New Zealand is considering a capital raise before the end of the year so it does not have to use a government loan, according to an investment analyst.

The airline has made a noncommittal statement in response to speculation in the Australian Financial Review that it has engaged advisers to look at options for injecting cash, including a possible share issue.

“The company continues to assess its capital structure and the options available to it, including taking advice from professional advisers as required,” the carrier said in a stock exchange statement.

“Air New Zealand currently has a $900 million facility from the Crown which has yet to be drawn.”

The airline has shed 4000 jobs across its business, and is looking at further possible redundancies as it looks to cut its wage bill by another $150m.

It’s already laid up a portion of its long haul fleet, and last week said it was burning through $5m a day as it struggles in the face of a slump in air travel because of the Covid-19 pandemic.

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