Air New Zealand is on course to unveil a record half year result this week, helped by the plunge in oil price as Kiwis enjoy what's been described as a golden age for travel.
But for the national carrier both relatively low fuel prices and the travel boom could be something of a mixed blessing. Air New Zealand has honed itself into a lean machine, able to remain competitive at oil prices around US$120 a barrel.
But jet fuel prices are around half of that level hit in the middle of last year and now nearly all airlines are reporting improved results because of it. Even American carriers, often hovering close to bankruptcy, are mostly back in the black.
Lower oil prices mean the less efficient carriers with older aircraft than Air New Zealand are back in the game. So while Air New Zealand is liking lower fuel costs, other airlines with older planes need them more. Those airlines are now more capable of dropping prices and that's where Air New Zealand may feel the pain if it's forced to sacrifice yield or risk losing passengers.
And potentially worse for Air New Zealand (but better for passengers), it also opens up the prospect of competitors previously deterred by the high fuel cost of ultra long haul flying here having another look. Rumours swirl occasionally in the travel industry about American carriers resuming direct flights across the Pacific but so far they haven't come to anything.