Air New Zealand profit falls on low demand and Hong Kong unrest


Air New Zealand has reported a net profit after tax of $NZ101 million ($97 million) for the six months to December 31, driven down 33 per cent from the prior period by slower demand, a weak cargo market, one-off costs and civil unrest in Hong Kong.

On an underlying basis, pre-tax basis profit was down 8.8 per cent to $198 million – the company’s lowest first-half result in five years.

Air New Zealand has joined other airlines in cutting capacity to Asia in light of the coronavirus.

Air New Zealand has joined other airlines in cutting capacity to Asia in light of the coronavirus. Credit:AAP

Air New Zealand’s new chief executive Greg Foran said he would spend his first 100 days in the job conducting a review of operations.

“The diagnostic of the airline will look at how we can drive long-term sustainable outcomes for our customers, our staff, the broader community and our shareholders,” said Mr Foran, a former executive at Australian retailer Woolworths and most recently US giant Walmart.