Air New Zealand’s leaders say travellers can expect more competitive fares as fuel prices remain favourable.
Speaking at a company financial update, Chief Executive Christopher Luxon said the airline plans to continue offering competitive fares on all of its routes.
This includes services in New Zealand, on the Tasman, to the Pacific Islands and on the airline’s long haul network.
“Expect to see even more competitive pricing.”
Christopher Luxon, Air New Zealand CEO
The statement comes after the airline announced in November last year that should the then current level of jet fuel price persist, there would be a significant additional improvement in earnings in the second half of the financial year.
As a result of low fuel costs, the airline has reported a record in normalised earnings before taxation of $216 million for the first six months of the 2015 financial year.
This was an increase of 20 percent compared to the same period the prior year.
In December Air New Zealand will launch its first ever scheduled services to Buenos Aires in South America. Image: Jess Kraft/Shutterstock
Statutory earnings before taxation were $197 million, while statutory net profit after taxation was $133 million – down six percent year-on-year.
Chairman Tony Carter said in addition to favourable fuel costs, the result demonstrates again that Air New Zealand continues to be one of the few airlines in the world that is able to generate sustainable profits.
“Fuel prices are lower than in November and the sales momentum has been maintained, further strengthening the company’s outlook for the current year and beyond.”
Tony Carter, Air New Zealand chairman
Mr Luxon said 2015 is expected to be a ‘very positive’ year for the airline, with plans to grow the airline’s network by recommending flights on the Auckland-Singapore route and introducing greater connectivity to Southeast Asia and markets beyond.
The airline also plans to launch its first ever scheduled services to South America flying to Buenos Aires from December this year.
