High demand, tight capacity boost Air New Zealand earnings

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High demand, tight capacity boost Air New Zealand earnings | BillieEder

Air New Zealand is making the most of increased demand for domestic and international travel to streamline its recovery from the pandemic, with New Zealand’s flag carrier lifting its half-year earnings guidance for the 2023 financial year.

The airline has estimated that its half-year earnings for the 2023 financial year will now be between $295 million and $325 million. Similarly, Virgin Australia expects to be profitable in the 2023 financial year for the second time in a decade, while Rex also forecasts profits after its intercity jet operations recorded its first monthly profits in September and October 2022.

Domestic travel for Air New Zealand is running at just below 100 per cent capacity, while short-haul is about 85 per cent and international about 70 per cent, with the airline acknowledging that capacity constraints had impacted company growth and pricing for customers.

 

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