Air New Zealand swings back into the black

WELLINGTON: Air New Zealand swung back into profit in the first half of its current financial year as it benefited from lower costs, a surging kiwi dollar and a major revamp after its near-collapse in 2001. 

The majority state-owned airline said yesterday it was on track to meet its full-year profit forecast, but warned that bookings were down 10% for March and the possibility of war in Iraq and global terrorism had cast a pall over the outlook. 

Larger rival Qantas Airways of Australia sounded a similar warning last week when it posted record first-half profits. 

“There is no doubt ... the uncertain world stage will negatively impact our business, with passenger numbers, yields and fuel prices all likely to be affected,” chairman John Palmer said. 

For its first half ended Dec 31, 2002, Air New Zealand reported a NZ$93.9mil net profit, compared with a one-off driven NZ$376mil loss in the year-earlier period. 

Revenues rose 2% as higher numbers of passengers slightly outweighed cheaper fares after Air NZ launched the domestic no-frills Express class.  

Profit before unusual items and tax came in at NZ$138mil, compared with a NZ$90mil loss in a year earlier, and the airline stuck to its December forecast of a NZ$230mil full-year surplus in core earnings. 

The improved result follows last year’s life-saving NZ$885mil government rescue package and comes as competition regulators study a proposed alliance with Qantas. 

Regulators say a decision could be made sometime around mid-year, with Air NZ hoping to seek shareholder approval in the final quarter of 2003. The airline has said the tie-up with Qantas is needed to ensure its long-term viability. – Reuters  

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights

Next In Business News

PBOC promises to protect consumers as Evergrande teeters
MyNews losses widen due to strict Covid-19 measures�
Dolomite Corp classified as PN17, unable to pay debts
AirAsia X posts record RM24.6bil net loss in Apr-June quarter�
Straits Energy eyes 5G rollout projects with partner Seashore�
Crude oil at 3-year high, Brent nears US$80 a barrel amid supply constraints
Protasco registers RM6.4mil profit in Q2, boosted by road maintenance works
Muted market response to 12MP
Malaysia's DuitNow, Singapore's PayNow to link in 2022
Asian shares creep higher, oil surges to 3-year peak

Stories You'll Enjoy