Air New Zealand chairman Sir Selwyn Cushing has warned shareholders that the airline will suffer a further slump in profitability due to rising fuel costs, weak Australian and New Zealand currencies, restructuring costs from the absorption of Ansett and increased competition. If fuel prices are sustained, fuel costs for financial year 2001 will be $100 million above budget, despite hedging programmes, says Cushing. Investors at the 1 November annual general meeting were told that first-quarter results were behind budget, and foreshadowed a full year trading profit "substantially lower than last year".
Source: Flight International
