Demand driving strong recovery for Air New Zealand

The airline's recovery is well underway, with it announcing a statutory earnings before taxation of NZD$299 million.

STRONG demand, particularly across the peak summer period, is driving Air New Zealand’s strong recovery, with the airline announcing statutory earnings before taxation of NZD$299 million and revenue of NZD$3.1 billion for the six months ending 31 December.

Air NZ flew eight million passengers during the first half of the fiscal year, with domestic capacity at 94% of pre-COVID levels, and international at 60%.

The results compare to a loss of $376 million for the equivalent six-month period last year, and three million flown during 1H22.

Air NZ’s interim result also reflects a return in business travel and overseas tourists, it said, adding it is optimistic about the level of demand it is continuing to observe.

However, Air NZ acknowledged there is significant uncertainty regarding the overall economic outlook both domestically and internationally, with increasing inflationary pressures, tighter monetary policy and other macroeconomic factors.

“Today’s result reflects an important milestone in our recovery and places us in a strong position to deliver on our strategy,” Chair Therese Walsh said.

“When New Zealand’s borders reopened much earlier than expected, our people rose to the occasion, moving swiftly to return aircraft to service, relaunch 29 routes and onboard more than 3,000 employees.”

“Despite some turbulence, we’ve stayed focused on getting our customers where they needed to go while keeping our eyes on the future.”

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