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Air New Zealand reduces profit forecast
April 23rd 2024
Air New Zealand (Air NZ) has lowered its profit forecast for full-year 2023-2024 amid softening market conditions. Read More » The company expects earnings before taxation for the 12 months to June 30 to range from NZ$190 million to NZ$230 million (US$112 million to US$136 million). In February, Air NZ’s fiscal year profit was estimated to be NZ$200 million to NZ$240 million. The airline group warned of a deteriorating operating environment at the time. “Since providing that guidance, Air New Zealand has continued to see softening in revenue conditions in the fourth quarter, both domestically and in the North American market,” Air NZ said in a regulatory filing. “Domestic performance has seen ongoing softening from challenging economic conditions and cost-of-living pressures. Government and corporate demand remains subdued. North American performance continues to be impacted by very competitive pricing pressures as the market adjusts to the significant capacity added into the New Zealand market by U.S. carriers.” Air NZ reported earnings before taxation of NZ$585 million in full-year 2022-2023.
