2023-10-11 22:08:00
Air New Zealand on Thursday reported a drop in profits for the first half of fiscal 2024 due to a recent slowdown in domestic travel demand, combined with volatile jet fuel prices.
New Zealand’s national carrier expects pre-tax profit for the first half of fiscal 2024 to be between NZ$180 million ($108.36 million) and NZ$230 million. The company had announced NZ$299 million for the same period the previous year.
“Jet fuel prices and the weak New Zealand dollar had a negative impact on costs for most of the first financial quarter,” the company said.
The price of kerosene increased by 35% between July and September, but fell by almost 10% in the past week.
The airline expects an average jet fuel price of $110 per barrel for the remainder of the first half of fiscal 2024.
The company had described the 2023 financial year as “unique”, having recorded a turnover of NZ$6.3 billion and a statutory profit of NZ$574 million for the period.
Air New Zealand warned in September that inspections of RTX’s Pratt & Whitney engines would have a “significant” impact on its flight schedule from next year.
The company, however, said on Thursday that the financial impact of the engine problems in the first half of 2024 should remain nominal.
($1 = 1.6611 New Zealand dollars)
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