Air New Zealand reports rise in earnings despite economic climate

Air New Zealand reports rise in earnings despite economic climate

Air New Zealand has seen earnings before tax increase to NZ$139 million during the first half of financial 2013, up from NZ$33 million last year.

After tax net profit at the flag-carrier increased NZ$62 million to NZ$100 million.

Airline chairman John Palmer described the interim profit result as excellent progress given the current economic climate.

“This is the best interim profit result for five years.

“The substantial change programme the airline has been implementing has positioned the business for consistent growth and sustainable profitability over the coming years,” Palmer explained.

Air New Zealand has responded to sluggish global demand by cutting costs, using more fuel-efficient planes and abandoning some unprofitable routes.

Its long-haul unit made a profit for the first time since the global financial crisis started five years ago, according to the statement.