Air New Zealand interim profit soars 75%

WELLINGTON: Air New Zealand posted a 75 percent increase in half-year net profit Thursday, as passenger numbers, cargo volumes and yields all increased from a year earlier. The airline said net profit for the six months to December was NZ$98 million ($73.3 million), up from NZ$56 million a year earlier, while operating revenue rose nine percent to NZ$2.2 billion. "Overall, Air New Zealand has had a strong six months," Chairman John Palmer said. Palmer said the airline, which is 76.5 percent state owned, had a solid platform for growth, citing a strategic alliance forged with Australian low cost carrier Virgin Blue, in which Air New Zealand holds a 14.9 percent stake. The airline, which lifted fares by an average three percent this month to cover rising fuel costs, said "fuel price volatility remains a significant risk to the year-end result". Air New Zealand shares were down 1.5 percent at NZ$1.32 in late afternoon trade compared with an overall market fall of 0.5 percent.