Long haul leads Air NZ passenger increase

Air New Zealand had a good month in June. Photo by Christine O'Connor.
Air New Zealand had a good month in June. Photo by Christine O'Connor.
Air New Zealand carried 1.34million passengers last month, 5% more than the same period last year, in a continuation of good news coming from the national carrier.

Revenue passenger kilometres were 10.5% higher on a capacity increase of 11.7%.

Short haul passenger numbers were up 3.5% while in the domestic market, demand and capacity increased by 4% and 2.3% respectively.

Tasman Pacific demand increased 4% but it was in the long haul routes where the airline made large gains.

Long haul passenger numbers increased 17.3% compared to June last year, demand was up 16% and capacity up 20%. On the North American United Kingdom routes, demand increased 6% and capacity was up 9.8%.

On the Asia Japan Singapore routes, demand increased 39.5% and capacity increased by 40.4% on the new Auckland Singapore route and larger B787-9 aircraft appeared on the Auckland Shanghai route. The load factor fell slightly in the month.

Overseas, United Airlines reported record earnings of $US1.2billion ($NZ1.82billion) for the second quarter, helped by a $US1billion fall in fuel costs.

Passenger, cargo and other operating revenues fell 2.6% in the April June period to $US9.9billion, but that was more than offset by the 34% fall in fuel costs, normally the largest cost for an airline, compared with a year ago.

Net income was up 51.2% from a year earlier and earnings per share surged 48.1% to $US3.14.

The company moved to share some of the boon with shareholders, announcing a $US3billion share repurchase plan throughout 2017, on top of an existing $US1billion buyback programme.

Qantas announced it was resuming flights to Queensland's Sunshine and Gold Coasts, routes it abandoned a decade ago, due to what the airline said was greater demand from premium travellers.

Qantas would launch a daily service between Melbourne and the Gold Coast from October 25 and would start flying between Sydney and Maroochydore six times a week from December.

The airline stopped flying the routes in 2004 and handed them on to its Jetstar subsidiary.

But increased demand from higher end travellers prompted Qantas to resume flights.

AirAsia says it will start domestic and international flights from Japan early next year, after a high profile exit from the market following the collapse of its joint venture with All Nippon Airways.

The Malaysia based company said it has applied to Japan's transport ministry to operate commercial flights, becoming the latest budget carrier aiming to crack a market long controlled by ANA and rival Japan Airlines.

 

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