01.03.06
Air New Zealand has become the latest airline to blame fuel costs for poor financial results as it saw profits tumble 55% for the first six months of its financial year. The airline reported a net profit before unusual items and tax of £30.5 million (NZD$81m) in the six months to December 31, a 45% fall in the same period in 2004.
Chairman John Palmer said the results reflected a £66 million rise in its fuel bill. He said: 'It is quite clear that the airline is facing unprecedented fuel costs, which have unduly affected the result for this period. A 36% increase in fuel prices combined with a reduction in fuel hedging gains has placed considerable pressure on earnings.'
The airline flew six million passengers during the six month period, a 4.5% increase on 2004.
