Contrasting fortunes for flag carriers

Contrasting fortunes for flag carriers
By admin


Air New Zealand said it remains on track to exceed last year’s earnings as the Qantas share price dived to its lowest level since privatisation in 1995.

Shares in the Australian flag carrier rallied this morning, rising 2.07% to 98.5 cents, after yesterday falling to 95.25c, its lowest for 18 years.

The fortunes of Qantas contrasted sharply with those at Air NZ which said earnings in the first six months of the year are expected to rise by 20%.

The carrier said it had “sufficient confidence” in December sales, and had greater certainty around redundancy costs – estimated at $10 million – to project the increase.

"The company has made good progress to date and remains on target to exceed last year's earnings for the full year," Air NZ added.

Meanwhile, Air NZ's November operating statistics showed a 1.2% rise in demand on Tasman and Pacific routes with capacity up 0.4%. It led to a load factor of 85.1%, a rise of 0.7 percentage points.

The number of passengers climbed 1.9% to 235,000.

Group wide, Air NZ carried 1.057 million passengers in November, up 1.1%. Demand fell slightly,  by 0.4%, and with capacity down 2.5%, loads climbed 1.8 points to 83.2%.

Long haul passenger numbers fell 2.6% compared to November 2012, with demand and capacity down 2.3% and 6% respectively. Loads increased 3.2 points to 83.1%.

Demand on North America-UK routes increased more than 8%, with loads up 2.7 points to almost 83%.

But on Asia-Japan-UK routes, demand tumbled 18% and capacity was down 22% as result of the withdrawal of Hong-Kong to London flights.

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