0058 GMT - An equity raising is only one option available to Air New Zealand as measures to reduce its debt burden become necessary, says Jarden. It expects Air New Zealand's net debt-to-Ebitda to be 5x at the end of FY 2026. That is "well above Air New Zealand's target range of 1.5x-2.5x, which suggests some capital management response is required," analyst Grant Lowe says. Alternatives to an equity raising include the deferral or cancellation of planned aeronautical capex, says Jarden, noting Air New Zealand's plans here totaled NZ$3.4 billion at 1H. It could also pursue a sale-and-leaseback arrangement of unencumbered aircraft, which represented NZ$2.3 billion at 1H. "While the latter option would assist with liquidity, we note it would increase the future lease liability," Jarden says. (david.winning@wsj.com; @dwinningWSJ)

(END) Dow Jones Newswires

May 11, 2026 20:58 ET (00:58 GMT)

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