WELLINGTON, 24 August 2017: Air New Zealand posted a 17.5% fall in annual net profit, Wednesday, as increased competition hits the carrier’s bottom line.
The airline said net profit for the 12 months to June 30 was NZD382 million (USD278 million), down from a record NZD463 million in the previous financial year.
Air New Zealand said it was still the second-highest figure ever recorded by the airline, describing it as a “strong” result.
“This year Air New Zealand faced an unprecedented increase in the level of competition from some of the world’s largest airlines and effectively rose to the challenge,” chief executive Chris Luxon said.
Pre-tax earnings also dipped 20.5% to NZD527 and operating revenue was off 2.3% at NZD4.4 billion.
The company said it was “optimistic about the overall market dynamics” and aimed to improve its earnings in the current financial year.
© Agence France-Presse