News
Air New Zealand forecasts reduced interim earnings
October 13th 2023
Air New Zealand (Air NZ) expects to report earnings, before taxation, in the range of NZ$180 million to NZ$230 million (US$107 million and US$137 million) in the six months to December 31. Read More » The forecast was down from pre-tax earnings of NZ$299 million in the same six months in 2022. “Customer demand remains solid across most markets, but recent softness in domestic travel, particularly corporate and government travel, has continued,” Air NZ said in a regulatory filing. “Jet fuel prices and the weaker New Zealand dollar also have had an adverse impact on costs for much of the first financial quarter.” The company added the financial impact of recently disclosed issues with Pratt & Whitney geared turbofan engines, which power the airline's A320neo fleet, is predicted to “remain nominal” in the first half of 2023. However, the engine issue is forecast to have a “noticeable impact” on the airline’s flying schedule in the second half of the financial year, the Star Alliance member said.
