Air NZ numbers fall 10pc in May

Air New Zealand carried 9.9 per cent fewer passengers in May compared to a year earlier, as the industry continues to be hit by global recession and with rapid change occurring in this country.

In its monthly investor update, released today, the airline said that despite the fall in passenger numbers to 850,000, its load factor increased 2.2 percentage points to 75.7 per cent after capacity was cut 13.9 per cent.

Earlier this month, speaking on the sidelines of the annual International Air Transport Association's general meeting, Air NZ chief executive Rob Fyfe said demand for air travel was probably going to get worse.

Last month Air NZ said it was carrying out a review aimed at maintaining the competitiveness of its regional airlines in the current tough market.

Despite the tough times, the airline announced subsidiary Eagle Air would be operating a twice-weekly trial service from July between Christchurch and Westport, with a commitment from Solid Energy to use the new service.

Changes to the industry in this country could also challenge Air NZ.

Last week Jetstar, the budget carrier owned by Qantas, started flying between Auckland, Christchurch, Wellington and Queenstown, replacing Qantas flights.

From September Christchurch-based Pacific Blue, a subsidiary of Virgin Blue, will be introducing new services across the Tasman from Queenstown, Wellington, Dunedin and Hamilton.

In its update today, Air NZ said short haul passenger numbers were down 9.3 per cent to 743,000 in May compared to a year earlier.

But the domestic airline's load factor was up 0.5 of a percentage point to 76.1 per cent, and the Tasman/Pacific load factor rose 5 percentage points to 76.8 per cent.

For long haul services, passenger numbers were down by 13.7 per cent to 107,000, while capacity was cut by 14.6 per cent.

On North America/Britain routes passenger numbers fell by 10 per cent last month from a year earlier, while on routes to Asia/Japan/Britain routes the fall was 18.5 per cent.

- NZPA