This article was originally published on RNZ and re-published with permission.

Air New Zealand’s full-year profit has hit headwinds as higher fuel costs and slower passenger growth hit its earnings.

The airline reported a net profit of $270 million, 30 percent lower than a year ago.

A 29 percent rise in fuel costs, together with increased costs, more than offset growth in the airline revenue.

The airline carried more than 17 million passengers but growth is slowing domestically and on its international routes.

Chief executive Christopher Luxon said the airline was in a strong position but was adjusting to the outlook of lower growth and would be looking to hold its costs.

Unlike previous years, it did not mention a bonus for staff.

In May, the airline’s senior management agreed to freeze their pay for a year as part of the cost-cutting initiatives.

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