Air NZ’s cargo consolation
24 / 08 / 2011
AIR New Zealand will assess its business structure following poor financial results, with the exception of cargo.
Earnings before tax sank to NZ$75 million (US$62 million) for the 12 months to 30 June 2011, 45 per cent down compared to the 2010 financial year.
Reduced demand for travel as a result of the Christchurch (New Zealand) and Japan earthquakes, additional capacity into Christchurch to assist the relief effort and compassionate fares for those affected by the Christchurch earthquakes slashed earnings by an estimated NZ$70 million ($58 million).
The airfreight side however saw a strong improvement in performance, with revenue up nine per cent to NZ$278 million ($230 million) for the 2011 financial year.
“Long-haul routes in our network lost more than NZ$1 million ($829,000) a week in the first six months of this calendar year. No stone will be left unturned as we rigorously review our business model, the routes where our capacity should be deployed, our sales and marketing strategy and alliance partner opportunities. The process of change will start to take place this side of Christmas,” chief executive Rob Fyfe explained.