Aus­tralia key to Air NZ re­sult

Travel Daily - - News -

AIR New Zealand this morn­ing re­ported a NZ$540 mil­lion pre-tax profit re­sult for the year to 30 Jun - its sec­ond best ever - with Aus­tralia a “stand­out per­former” in driv­ing the per­for­mance, ac­cord­ing to NZ chief com­mer­cial of­fi­cer, Cam Wal­lace.

Speak­ing to TD this morn­ing, Wal­lace said both short- and long-haul mar­kets con­tin­ued to be well sup­ported by the trade.

The strong re­sult will see a bonus of up to NZ$1,800 each paid to about 8,500 NZ per­ma­nent em­ploy­ees not par­tic­i­pat­ing in a short-term in­cen­tive pro­gram.

The car­rier had record op­er­at­ing rev­enue of NZ$5.5 bil­lion, up 7.4%, and achieved its earn­ings guid­ance de­spite a “fuel price head­wind” which added more than $130 mil­lion to costs.

On­go­ing in­vest­ments will see the up­com­ing launch of new non-stop ser­vices to Chicago and Taipei plus ad­di­tional Bris­bane flights from Welling­ton and Queen­stown, while the air­line is also ex­pect­ing to start tak­ing de­liv­ery of 10 Air­bus A320/321neo air­craft which will pro­vide “con­tin­ued growth and cost ben­e­fits to the Tas­man and Pa­cific Is­lands net­work”.

NZ also an­nounced it would lease three Boe­ing 777s to de­liver greater sched­ule re­li­a­bil­ity as it con­tin­ues to work through the main­te­nance re­quire­ments on its 787s re­lat­ing to the global Rolls- Royce Trent 1000 en­gine is­sues.

The changes will free up two wide­body air­craft and al­low re­tim­ing of flights to Buenos Aires and Tokyo Haneda.

An­other key de­vel­op­ment for Air NZ is the up­com­ing ces­sa­tion of its trans-Tas­man al­liance with Vir­gin Aus­tralia, which ter­mi­nates on 28 Oct, and the sub­se­quent launch of the air­line’s new code­share deal with Qan­tas.

Wal­lace said he was ex­cited about the op­por­tu­nity to “com­pete more ag­gres­sively on the Tas­man with a deeper sched­ule, new routes, up­dated planes and a fan­tas­tic code­share con­nect­ing part­ner who will pro­vide us with the best prod­uct and most com­pre­hen­sive ac­cess to the Aus­tralian do­mes­tic mar­ket”.

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