Air New Zealand's (ANZ) profits have plummeted due to a fall in demand, volatility as well as increased competition.
The Star Alliance carrier says in the year ending 30 June it had a net profit of NZ$21 million ($14 million) compared to a net profit of NZ$218 million the year before.
Operating revenue fell 1% to NZ$4.61 billion from NZ$4.67 billion, it says.
The carrier attributed the profit fall to "volatility in foreign exchange rates and fuel prices, deterioration of demand for air travel, a capacity reduction of 7.2% in response and increased competition on trans-Tasman and trans-Pacific."
The airline says RPKs for the group fell 7.6% year-on-year and a break-down shows long-haul RPKs down 8.8% and short-haul RPKs down 5.8%.
ANZ CEO Rob Fyfe says: "We will continue to invest in new products, technology and customer service while keeping a strong focus on reducing costs and becoming more efficient."
He says: "Although there are some early indicators that the slump in travel demand may be showing signs of having bottomed out, it would be naive to think there won't be bumps on the road to recovery."
Fyfe also says "yields remain under significant pressure and fuel prices have resumed an upward trend."
Source: Air Transport Intelligence news
