Air New Zealand faces defining year
AUCKLAND – Air New Zealand chief executive Rob Fyfe has indicated that the next 12 months will be critical for the airline’s identity.
He was speaking after AirNZ announced that its first-half profit almost doubled as fuel costs tumbled and the airline reined in labour costs.
“The next 12 months will be one of the most defining in Air New Zealand’s history,” Fyfe said.
“Our competitors will be scrambling to catch up as we introduce a world-first long-haul experience, continue to evolve our trans-Tasman and Pacific Island operation and introduce more capacity into our domestic jet operation with the arrival of new A320 aircraft.”
Fyfe says the AirNZ improvements were close to implementation and would ensure Air New Zealand could compete effectively against both budget and full-service airlines.
“There is no question the next year will set the direction and identity of our airline for the next decade,” he said.
The airline reported first-half earnings after tax rose to NZ64 million, while revenue declined 15 percent, reflecting lower yields, passenger numbers and cargo volumes.
"Passenger demand does seem to have bottomed out in the first half of the 2010 financial year and volumes have shown good signs of recovery since, although at significantly lower yields," Fyfe said.
Fuel costs fell to NZ$458 million from $948 million a year earlier while labour costs declined to $492 million, from $508 million.
Operating revenue fell 15 percent to $2.1 billion as passenger demand slipped 4.6 per cent.
The passenger load factor climbed three percentage points to 81.6 per cent.
“In very challenging conditions this is a good result,” says Air New Zealand chairman John Palmer.
Ian Jarrett
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