The prospects of Jetstar flying to Dunedin appear to have strengthened in the slipstream of the airline making an operating profit on its New Zealand routes.
However, it is wary of expanding its Queenstown service before the installation of aircraft navigation equipment to allow operation in poor weather.
Jetstar said it was in the black by a "six-figure" sum in July, its first full month of operations, although no details were provided, being outside the financial year.
Parent company Qantas yesterday announced an 87.9% drop in annual net profit to $A117 million.
Jetstar started flying within New Zealand on June 10, replacing Qantas on domestic routes after Qantas lost A$32 million here in the year to June 30.
The budget airline's operating costs are far lower than those of Qantas.
Its near-new A320 planes are larger and more efficient, and revenue from on-board food sales, hotel and rental car commissions was ahead of target.
Jetstar chief executive Bruce Buchanan said the early move to profitability could bring forward its New Zealand expansion plans.
Cities including Hamilton, Rotorua, Dunedin and Invercargill could be part of the expansion and he hoped to have a fourth aircraft based in the country within the current financial year.
Its transtasman services could also be expanded.
A pending announcement on streamlining border procedures would open up possibilities to fly to second tier airports, such as Newcastle, in Australia, he said.
Despite high-profile teething troubles, the airline has carried more than 200,000 domestic customers since starting.
Planes were 78% full in June and more than 80% in July.
Mr Buchanan said expansion would be in conjunction with improving staff numbers and training.
Its New Zealand operations are the latest for Jetstar, which has domestic services within Australia, operates long-haul to Asian destinations and has a subsidiary in Singapore and is part of a joint venture in Vietnam.
Jetstar's total operation returned a profit before tax of A$137 million - an 18%increase on the previous year. -The New Zealand Herald
