Air NZ expects higher profit on 'strong' demand for travel, lower fuel costs

Air New Zealand has lifted its expectation for annual profit as demand for travel remains strong and jet fuel prices fall. In a statement to the NZX on Thursday, the national airline said it expects profit before tax and one-time items of $510 million to $560m in the year to the end of June, up from its February 23 forecast of $450m to $530m and a turnaround from a pre-tax loss of $725m last year. “The airline has continued to experience strong levels of demand on both the domestic and international networks,” the company said. “US dollar jet fuel prices have also declined below those assumed in the earnings guidance provided in February 2023, although the New Zealand dollar has also weakened over this time, reducing the impact of these declines. The improvements in revenue and jet fuel price are expected to be partially offset by softer cargo revenues due to increased competitive capacity, particularly in Asia, impacting yields and load factors.” The airline is in recovery after being hard hit during the pandemic as international borders closed to travellers and it is expecting to return to profitability this year after three years of losses. In the first half of the year, it reported a net profit of $213m, compared with a $272m loss in the same period a year earlier.<br/>