Air New Zealand raises first half profit outlook on travel demand

Air New Zealand Thursday increased its earnings forecast for the first half of fiscal 2023, helped by strong travel demand across its domestic and international networks and a decline in jet fuel prices. The increased profit outlook follows a moderation in fuel prices in recent weeks and assumes that the airline will fly about 75% of its pre-COVID capacity levels across the network in December, according to Air New Zealand. The company now expects earnings before tax and other significant items between NZ$295m ($187.5m) and NZ$325m for the first half ending Dec. 31, compared with its previous outlook of NZ$200m to NZ$275m. The airline's ticket sales for the past two months have remained robust as international destinations reopen for travel, the country's flagship carrier said. Air New Zealand, however, added that capacity was still constrained and would continue to impact pricing.<br/>