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Air NZ expects $113m annual loss

Air New Zealand expects a full year loss following the impact of the coronavirus outbreak

Air New Zealand has forecast an underlying loss of up to $NZ120 million ($A113 million) for the financial year ending June 30, as it grapples with a plunge in air travel demand following the coronavirus outbreak.

The airline last month warned of an annual loss after it reported a slew of impairment charges it would take on its planes and a 30 per cent cut in its workforce.

The COVID-19 outbreak has wiped out almost all commercial traffic, forcing carriers around the world to lay off employees and call for government aid to survive.

Air New Zealand said last week it was aiming to return to "healthy profits" by 2022 under a plan that includes flying fewer passengers and routes and possibly cutting more jobs.

The company will record a $NZ70 million ($A66 million) non-cash gain in its full-year results related to the impact of foreign exchange movements on some of its unhedged debt, it said in a statement on Thursday.