Air New Zealand, the national carrier, wants to lift annual profit by $110 million by 2015 and is picking a better performance than the latest earnings performance which was sapped by natural disasters in the region.
The Auckland-based airline is aiming to boost earnings from long-haul flights, an under-performing part of the business, according to investor presentation slides lodged with the stock exchange. The airline's key planks would see it focus on in-flight products and services, deploy the new Boeing Dreamliner and cut costs. It also plans to explore new markets in South America, Asia and North America, as well deepen network into China.
The target comes after Air NZ reported a second-half loss of $37 million in the six months ended June 30, when the airline's services were disrupted by earthquakes in Canterbury and Japan, leading to unprofitable 'compassionate' fares for Christchurch residents.
Chief executive Rob Fyfe described the period as the "most difficult Air New Zealand has faced in the past decade," and came as airlines around the world struggled with tepid demand for long-haul travel amid the global economic downturn.
Still, Air NZ is more upbeat about the coming year, saying it expects improvement on the latest financial year, though that will be impacted by external conditions.
