Sunday, September 7, 2025
  • Login
Forbes 40under40
  • Home
  • Technology
  • Innovation
  • Real Estate
  • Leadership
  • Money
  • Lifestyle
No Result
View All Result
  • Home
  • Technology
  • Innovation
  • Real Estate
  • Leadership
  • Money
  • Lifestyle
No Result
View All Result
Forbes 40under40
No Result
View All Result
Home Lifestyle

Air New Zealand eyes fare hikes as costs surge, profit slumps

by Riah Marton
in Lifestyle
Air New Zealand eyes fare hikes as costs surge, profit slumps
Share on FacebookShare on Twitter


AIR New Zealand said it may raise ticket prices to cover rising costs after reporting a 38 per cent slump in interim earnings and forecasting an even worse second half.

Inflationary pressures have driven up non-fuel operating costs over the last four years, which is “having a significant impact on the cost of providing air services, including on the domestic network”, the Auckland-based carrier said on Thursday (Feb 22). “The airline is currently reviewing fares and capacity to better reflect ongoing cost pressure,” it said.

Air New Zealand is facing intense competition on its international routes, particularly from North America where United States airlines have not yet returned to China at scale and have directed some of that additional capacity to the New Zealand market. It is also grappling with Pratt & Whitney engine maintenance issues on its Airbus A321neo fleet, which will see as many as five of its newest and most efficient aircraft out of service at any one time across the next 18 months at least.

“On top of these operational challenges, we are now leaning into the reality of a worsening revenue and cost environment, which is expected to have a significant adverse impact on performance in the second half,” Chair Therese Walsh said. “Despite these short-term challenges, the airline is in a fundamentally strong position. Our balance sheet is robust.”

First-half pre-tax earnings dropped to NZ$185 million (S$248.6 million) even as operating revenue rose 13 per cent to NZ$3.5 billion, Air New Zealand said. It reiterated that full-year pretax earnings could drop to as little as NZ$200 million from NZ$585 million a year earlier.

A dividend of 2 NZ cents per share was declared for the first half.

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Chief executive officer Greg Foran said Boeing has confirmed that the first of the new 787 Dreamliners is unlikely to arrive until at least mid-2025, which will delay delivery of the airline’s Skynest offering – bunk beds in economy class.

To mitigate maintenance requirements for both Pratt & Whitney and Rolls Royce engines, Air New Zealand leased a Boeing 777-300ER in November. A second leased 777-300ER will enter the fleet mid-year and negotiations for a third are advanced, he said. BLOOMBERG



Source link

Tags: AirCostsEyesfareHikesProfitslumpsSurgeZealand
Riah Marton

Riah Marton

I'm Riah Marton, a dynamic journalist for Forbes40under40. I specialize in profiling emerging leaders and innovators, bringing their stories to life with compelling storytelling and keen analysis. I am dedicated to spotlighting tomorrow's influential figures.

Next Post
Federal Reserve officials will dive into balance sheet debate at March FOMC

Federal Reserve officials will dive into balance sheet debate at March FOMC

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Forbes 40under40 stands as a distinguished platform revered for its commitment to honoring and applauding the remarkable achievements of exceptional individuals who have yet to reach the age of 40. This esteemed initiative serves as a beacon of inspiration, spotlighting trailblazers across various industries and domains, showcasing their innovation, leadership, and impact on a global scale.

 
 
 
 

NEWS

  • Forbes Magazine
  • Technology
  • Innovation
  • Money
  • Leadership
  • Real Estate
  • Lifestyle
Instagram Facebook Youtube

© 2025 Forbes 40under40. All Rights Reserved.

  • About Us
  • Advertise
  • Contact Us
No Result
View All Result
  • Home
  • Technology
  • Innovation
  • Real Estate
  • Leadership
  • Money
  • Lifestyle

© 2024 Forbes 40under40. All Rights Reserved.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In