AIR NEW ZEALAND (ANZ) has turned in record profits for its latest financial year, despite the effects of Japan's Kobe earthquake and the grounding of ten Boeing 737-200s in February because of fan-blade failures (for which the carrier is seeking compensation).
ANZ raised net profits by more than one-third, to NZ$260 million ($170 million) for its year to the end of June and forecasts a further improvement for 1995/6.
The performance was backed by strong growth in international routes, especially to North America, where revenues rose by 20%. Despite the setback in Japan, services to Asia also showed a healthy 15% rise.
Capacity on international routes increased by more than 18% as new transpacific services started from Los Angeles via Sydney and from Japan's new Kansai Airport in Osaka. The expansion had some impact on load factors, which edged down by three points to average a respectable 69%. Yields rose modestly, in spite of the strength of the New Zealand dollar.
Fleet expansion during the year saw ANZ acquire two Boeing 767-300s, replacing 767-200s. It took another 767-300 on operating lease as well as two Boeing 747-400s on short-term lease. The next new aircraft delivery is not now due until a further 767 arrives in June 1997.
Domestic capacity was also expanded by 7.5% and showed a similar rise in revenues. Domestic operations were hit by the grounding of the ten 737-200s, which had to have new fan-blades fitted. "The cause of that technical problem has recently been established as not being attributable to ANZ, and recovery of certain costs will be pursued," says the carrier.
ANZ says that it will continue to pursue a tie-up with Ansett Australia, although it admits that its talks over taking an equity stake have floundered. The airline says that it "...remains hopeful that the companies will ultimately move closer together", but says that it will continue with its own expansion of the Asia-Pacific network regardless.
Source: Flight International
