(Recasts, adds government statement, management quote, background)
April 9 (Reuters) - Air New Zealand AIR.NZ on Friday secured an increased loan facility from the government, and said it had deferred its planned capital raise by three months due to evolving market circumstances.
The loan facility made available to the airline in March last year has been increased by NZ$600 million to NZ$1.5 billion($1.06 billion) and the interest rate lowered to reflect current market conditions, the government said in its statement.
"We've seen some clearing of COVID-19 clouds recently, with the extension of the airfreight capacity scheme, the rollout of the vaccine and the opening of the trans-Tasman bubble on 19 April," Chairman Dame Therese Walsh said, adding that the storm had not cleared yet.
The airline, which suspended its cash burn forecast, had said on Tuesday it would ramp up flights between Australia and New Zealand to at least 70% of pre-pandemic levels, once a two-way quarantine-free travel bubble opens on April 19. carrier said it was now targeting to undertake the proposed fund raise before September 30, as it continues to assess its capital structure and longer-term funding needs.
The company added that with the increased government loan facility, it now has sufficient liquidity to take the airline through to the capital raise. ($1 = 1.4176 New Zealand dollars)