Air NZ posts huge first half year net profit, despite higher fuel prices

Air NZ has announced first half earnings, before tax, of $323m, and a net profit of $232m.

That came on the back of record passenger revenue of $2.3b, Air NZ said today.

"We are thrilled with the performance of our network in the period," said CEO Christopher Luxon.

"The domestic market continues to show strength driven by the New Zealand economy as well as inbound tourism, and we will be increasing capacity approximately six percent across our regional and jet services to support that demand over the second half of the financial year.

"The Trans-Tasman and Pacific Island routes have also responded strongly to additional wide-body services and targeted capacity increases.

"Finally, our alliance partnerships continue to drive value across our international long-haul network, and have been a key factor in our ability to effectively compete against much larger airlines."

The result was achieved despite fuel prices climbing by 18 per cent.

"We have had some unprecedented weather events, along with the fuel pipeline disruption and the unscheduled engine maintenance on some of the Boeing 787-9 aircraft.

"All of these disruptions are outside of our control, but our people have been remarkable, with a clear focus on doing the best for our customers, and that is what really sets us apart and drives such strong loyalty for our airline."

Air New Zealand last year posted a full year net profit of $382m, leading to all staff getting a bonus of $1700.

In 2016 Air NZ's net profit was a record $463m.

The airline has won over 60 international awards in the last seven years.
Source: 1 NEWS