The company hasn't denied JetConnect has been losing money (they reckon they've been bleeding money on the Tasman for years). They just say it is losing less than mainline would but they need to maintain a maningful presence on those routes. Ceding them to Air NZ, EK, Virgin would cost them more.
Not saying I believe it - I'm disengaged, remember? - but it's had to argue against from a business or IR perspective.