Air NZ profits drop by $109 million year on year

Air NZ profits drop by $109 million year on year

Air New Zealand has reported a $349 million profit for the half year ending December 2016, however still managed a downturn on last year’s result from the same period of $457 million.

The figures mean Air New Zealand pocketed $256 million net profit after tax, while the carrier also managed an operating revenue of $2.6 billion.

It comes as the airline adds three additional Boeing 787-9s in the six month period, bringing the total in the fleet to nine.

Meanwhile, Qantas profits fell by 25 per cent, and Flight Centre plummeted 36 per cent to $74.4 million net profit. Webjet on the other hand, reported record profits almost four times its previous half year results.

Chairman Tony Carter said the half year results were promising in spite of growing competition in the New Zealand market.

“As we look to the second half of the financial year, we expect that the revenue environment will improve from the first half of the year,” Carter said. “However, higher jet fuel prices will be a headwind.”

Air NZ CEO Christopher Luxon said the carrier managed to ward off some of the pressure from competitors through strong cost discipline and maintaining efficient operations.

“We modified our capacity plans, accelerated the exit of older aircraft and made sure we were managing our costs well,” Luxon said.

“All these actions and our investments of recent years really made the difference as we adjusted to a different competitive environment in New Zealand.”

The airline’s strategy of shaking things up in the Pacific Rim have proven successful, with strong performances from both its Houston and Buenos Aires routes in the first year of operation.

Working to remind Aussies of its long-haul capabilities across the ditch were also important parts of the strategy, including the introduction of lovable Dave the Goose.

 

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