Air New Zealand has warned of a significantly lower performance in the second half of the financial year, citing various economic and operational challenges.
The airline said its forward bookings indicated that increased capacity and pricing pressure from US carriers would have a more adverse impact on revenue for the rest of the year.
It also highlighted the cumulative effect of significant inflation on its cost base, ongoing weakness in domestic corporate and government demand, and temporary cost headwinds related to engine maintenance requirements.
Air New Zealand now expects earnings before taxation for the 2024 financial year to be in the range of $200 million to $240 million, assuming an average jet fuel price of $105 per barrel for the second half.
The company will provide further details on the outlook when it releases its interim results on Feb 22 2024.
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