High jet fuel prices could be affect Air New Zealand's profits in 2019.
Recent changes in jet fuel prices have outpaced the $US85 ($NZ127.35) per barrel Air New Zealand had assumed in it's financial year earnings for 2019, chairman Tony Carter said today.
"As we look forward to the year ahead, we are optimistic about market dynamics and demand trends, but note that the current levels of jet fuel price will be a headwind on profitability compared to the prior year," Mr Carter told Reuters.
Airline companies around the globe are expected to be affected financially, with jet fuel prices rising to $US93.81 ($NZ140.57) per barrel.
As a result of higher fuel prices, pretax profit was expected to fall up to 21 per cent from $540 million in 2017 in the current financial year, according to Air New Zealand.
The airline's shares have also fallen 1.6 percent to a seven-month low in the market.
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