Business Round-Up
Profit soars at Air New Zealand
March 1st 2014
Interim after tax profit at Air New Zealand (AirNZ) jumped by 40% year-on-year, to a record NZ$140 million (US$112 million), putting the airline firmly on track for a full year before tax profit of NZ$300 million. Read More » Factors contributing to the strong result were stringent capacity and route control, especially on its long-haul network, a sustained surge on its flights to the U.S., dominance in its domestic market, improvements in its cost base as well as a streamlining of suppliers and stronger connections and therefore bookings with its partnerships that range from Virgin Australia and Singapore Airlines to Cathay Pacific Airways. Attribuing the result to the hard work of his 11,000 staff, chief executive, Christopher Luxon (pictured), said the employees had placed the airline in a position where it was able to adapt to a changing economic and competitive environment.
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He added: “through our alliance partnerships, we are able to offer more connections, frequencies and destinations than ever.” Recently, Singapore Airlines (SIA) and Air NZ announced an alliance that will return the Auckland-based carrier to Singapore and allow it to slot into SIA’s Asian route network. The carrier expects to add capacity of 8% next year with the arrival in its fleet of B787-9s and B777-300s for long haul routes and new A320s and ATR72-600s for growing domestic demand.
