Dispute resolution boosts Air NZ
Air New Zealand's financial fortunes continue to soar, with the airline forecasting its profit for the half year to December 31 will be 20 per cent higher than a year earlier.
The national carrier said the first half profit before tax would be about $166 million, up from $139m a year ago.
The carrier attributed the stronger performance to resolving labour contract disputes, which cost the airline $10m in voluntary redundancies and were included in the forecast.
Air New Zealand said it had "made good progress [in the] year to date and remains on target to exceed
last year's earnings for the full year".
Air New Zealand recorded a $182m profit for the year to June 30, its best in five years.
The carrier continues to outshine other airlines in Australia and New Zealand. Australian carriers Qantas and Virgin Australia have been embroiled in intense domestic competition and have previously both issued profit warnings.
The Government recently sold down its stake in the flag carrier to 53 per cent.
Air New Zealand's share price was today trading at $1.64 up 1.5c.