8% Fall in Air NZ Passenger Numbers

Air NZ passenger numbers fall 8%, on drop in long-haul demand

Feb. 18 – Air New Zealand Ltd., which is scheduled to report first-half earnings next week, said passenger numbers continued to drop in January, led by a decline in demand for long-haul flights and domestic services.

Total passenger numbers declined 8% to 923,000 last month, while available seat kilometres dropped 6.6%. Total long-haul passengers fell 11%, reflecting a 13% drop on North American/UK routes and an 8.9% decline on Asia/Japan/UK routes.

Domestic passenger numbers fell 7.8% to 521,000 and on the Tasman and Pacific routes they fell 5.8% to 242,000.

A global economic slump is reducing demand for travel while rivals including Emirates and Singapore Air have added capacity on key routes across the Tasman. This week, Qantas Airways’ low-fare Jetstar unit announced it would begin operating on New Zealand domestic routes following the pull-out of its parent. It kicked off its entry to the market by selling 20,000 NZ$1 fares.

Air New Zealand “will compete vigorously with everyday low fares and a high level of service,” it said in a statement today. Its shares fell 2.2% to 89 cents and have fallen 49% in the past 12 months.

(Businesswire)

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