Travel bookings to New Zealand are doing well and Air New Zealand expects to return to profit, according to the latest announcement from the major airline.
“Air New Zealand continued to see strong forward sales during the first three months of the financial year, particularly for travel up to January 2023, and continues to operate at approximately 70 per cent of capacity for the 2019 financial year,” the airline explained in a stock exchange filing in September. 21, 2022.
If strong sales continue and capacity remains at these levels, the airline said it expected to report profit before tax and other significant items of NZ$200 million to NZ$275 million ($118 million to $162 million) in the first six months of the financial year. .
By comparison, the airline reported losses of NZ$725 million ($427 million) and NZ$444 million ($262 million) in the past two financial years after New Zealand closed its borders to contain the spread of COVID-19.
The airline recently said it is in a “recovery” phase following the COVID-19 pandemic and is looking forward to a year of uninterrupted passenger flights due to the pandemic and closed borders. Air New Zealand has launched direct flights from Auckland (AKL) to New York JFK on the Boeing 787 Dreamliner, is recovering its 777s from desert storage and has detailed plans to overhaul the cabins of its Dreamliners.
However, the airline cautioned against assuming that the first-half results could be repeated in the second half “given the many uncertainties in the trading environment”. Among the risks are uncertain demand in the next half of the financial year, fuel prices, cost pressures and the risk of a global recession.
“The airline notes that fuel prices remain highly volatile and that this is one of many factors that could slow our recovery and significantly impact earnings. In addition, demand in the second half of the financial year remains highly uncertain,” Air New Zealand said in a statement. statement.
https://www.aerotime.aero/articles/32205-air-new-zealand-eyes-first-half-profit Strong bookings will help Air New Zealand turn a profit for six months