Deputy Prime Minister David Seymour has renewed his call for the Government to sell its 51% stake in Air New Zealand after it reported a significant half-year loss.

The airline posted a bottom-line loss of $40 million in the six months ended December, compared to last year’s profit of $106m.

Revenue was up just over 1% to $3.44b, compared to $3.4b a year ago.

Seymour, also the leader of the Act Party, criticised the airline, saying it should go back to the basics.

“The taxpayer has to have a purpose for having all that capital tied up. My question is: what is that purpose if they’re not providing a service that is affordable and timely? Instead, they seem to have been distracted by a million other objectives.”

Seymour said Air NZ had been doing “politically motivated stuff” when it couldn’t take off and land on time for a decent price.

“Get woke, go broke. We hear about electric planes, glossy reports on climate change, paper cups in the Koru Lounge. What they can’t seem to do is take off and land on time,” he said.

Air NZ attributed the loss to global engine maintenance delays, rising costs, and a weaker New Zealand dollar. Photo / Getty Images

“I’m fortunate that, as an MP, I don’t have to pay for work flights, but whenever I look at one privately, they’re looking at $600 to go from Wellington to Invercargill one way. That’s crazy.”

The airline continues to face severe disruption because of grounded aircraft.

Air NZ said the half-year loss was largely driven by global engine maintenance delays, a slower-than-expected recovery in domestic demand, increasing costs and a weaker New Zealand dollar.

It said that while capacity would likely increase modestly in the second half with aircraft returning to service and new aircraft, the airline was cautious on whether it would translate to earnings uplift.

– RNZ