Air NZ posts 24% decline in first-half profit as competition mounts
Air NZ posted a 24% fall in first-half pre-tax profit in the face of increasing competition into the domestic market. Pre-tax earnings fell to NZ$349m in the 6 months ended Dec 31 from $457m in the same period a year earlier, the company said. Net profit in the first half fell 24% to $256m. Operating revenue was $2.22b versus $2.31b in the prior year. The carrier was forecast to post a 45% decline in first-half earnings to $186.5m on a 2.6% decline in revenue to $2.63b, according to Forsyth Barr analyst Andy Bowley. While net profit was sharply lower, the airline said it was the second highest result for an interim period in the airline's history. "Passenger revenue was the main driver of the decline, as a significant level of new competitors entered the New Zealand market in the period," said CE Christopher Luxon. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2017-02-23/star/air-nz-posts-24-decline-in-first-half-profit-as-competition-mounts
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Air NZ posts 24% decline in first-half profit as competition mounts
Air NZ posted a 24% fall in first-half pre-tax profit in the face of increasing competition into the domestic market. Pre-tax earnings fell to NZ$349m in the 6 months ended Dec 31 from $457m in the same period a year earlier, the company said. Net profit in the first half fell 24% to $256m. Operating revenue was $2.22b versus $2.31b in the prior year. The carrier was forecast to post a 45% decline in first-half earnings to $186.5m on a 2.6% decline in revenue to $2.63b, according to Forsyth Barr analyst Andy Bowley. While net profit was sharply lower, the airline said it was the second highest result for an interim period in the airline's history. "Passenger revenue was the main driver of the decline, as a significant level of new competitors entered the New Zealand market in the period," said CE Christopher Luxon. <br/>
