Wednesday February 25, 09:54 PM
Air New Zealand half-year profit down 79 percent
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WELLINGTON (AFP) - Air New Zealand (AIR.NZ - news) announced Thursday its half-year net profit was down 79 percent as it was savaged by soaring fuel prices.
It described the performance as "unsatisfactory" in a tough economic climate.
The flag carrier, which is 76 percent government owned, said earnings in the six months to the end of 2008 were down 84 percent to 26 million dollars (13.05 million US), and the net profit after tax was 24 million dollars.
Air New Zealand chairman John Palmer said the past six months had been one of the toughest periods airlines have faced.
"Fuel costs reached unprecedented levels in 2008, with the average spot price increasing 36 percent on the same financial period last year adding an extra 211 million dollars to the fuel bill.
"This combined with the deterioration in both passenger and cargo demand, as the global credit crisis intensified, has seen the airline deliver an unsatisfactory financial result, despite the management team?s best efforts."
Operating revenue increased by 3.7 percent or 87 million dollars to 2.4 billion dollars compared to the same period the previous year, with foreign exchange movements contributing 75 million to the improvement.
Chief executive Rob Fyfe said Air New Zealand was reviewing all areas of expenditure and aimed to reduce long-haul capacity by 14 percent in the last quarter of the financial year.
It has already announced 100 long haul cabin crew positions will go.
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