Air NZ says burst fuel pipeline will not hit annual result

Auckland's jet fuel problems are not expected to hit Air NZ's annual earnings. Photo / Getty Images

Air New Zealand said it believed the fuel pipeline rupture that is preventing jet fuel from being piped from Refining NZ's plant at Marsden Point to Auckland would not have a big impact on its bottom line.

A spokeswoman for the airline said there had been no change to its statement issued on Monday, which said the supply issue was unlikely to have a material impact on the annual result for the June 2018 year.

The company last month reported earnings before tax for the 2017 financial year of $527 million - the second highest result in the airline's history.

In its latest update, Air NZ said it was continuing to experience disruption to its services following the temporary shut-down of Refining NZ's pipeline to Auckland.

The airline cancelled four transtasman and 26 domestic flights between Sunday and today.

Air NZ estimated up to 3000 customers will be impacted by cancellations today with around 6000 inconvenienced by unexpected schedule changes.

In most cases passengers are being accommodated on alternative services and the airline is working through the process of notifying customers, it said.

Further disruptions can be expected in coming days, the airline said.

Air NZ chief operations integrity and standards officer, Captain David Morgan said
Air NZ is doing all it can to minimise disruption to customers in "very challenging" circumstances.

"Our teams are working hard on solutions and we are communicating to impacted customers as quickly as we can. We appreciate their continued patience as we respond to this developing situation."

A spokesman for Jetstar said the airline had cancelled four domestic jet services today and two tomorrow as a result of the fuel shortage in Auckland.

"We're consolidating services and rebooking passengers on alternative flights the same day," he said.

The spokesman said it was too early to assess the financial impact of the pipeline failure on the cut-price airline.

He said between Sunday and Tuesday Jetstar cancelled seven return domestic jet services affecting around 1900 passengers.