Air NZ half year results:
Revenue - $2.4bn, up 4pc
Profit - -$24m, down 80pc
Dividend - 3 cents per share
KEY POINTS:
Air New Zealand's profit drop over the past six months will cost the Government $16 million in reduced dividends.
Soaring fuel costs and a fall in passenger revenue pushed net profit for the six months to the end of last year down 79 per cent to $24 million.
The airline cut its interim dividend from 5c last year to 3c, from which the Government - with a 76 per cent stake - will get $24 million.
Chairman John Palmer has described the result as "unsatisfactory" but was confident there could be a significant improvement during the second half of the financial year.
He said the last six months had been among the toughest ever faced by airlines but with falling fuel prices and the reduction in capacity to meet slowing demand, Air New Zealand was in a good position.
In the face of new rival competitor Jetstar, the airline says it will vigorously defend its position in the domestic and transtasman market, with improved services and fares as low as $1.
The Government paid $800 million to buy its stake in Air New Zealand in 2001 following the collapse of its Australian subsidiary, Ansett.
