Air New Zealand Investor Update
1 January market conditions
2 Aircraft deliveries
3 Company news
JANUARY MARKET CONDITIONS
In January, [WPMID=15] carried 923,000 passengers, down 8.0% on the same month last year. During the month the airline’s capacity was reduced by 6.6% on last January and the Group’s passenger load factor declined by 1.7 percentage points.
The Short Haul airline’s passenger load factor was down 3.1 percentage points on the same month last year as passenger numbers declined by 7.2%. In response Air New Zealand reduced capacity by 2.0% and announced the suspension of international services from Hamilton and reduced Tasman services from Dunedin.
In the Long Haul market passenger numbers decreased by 11.0%. On North America / UK routes passenger numbers fell by 12.7% and Asia / Japan / UK by 8.9% on the same month last year. As a result of proactive capacity management available seats were reduced 9.3% by down gauging aircraft size and reducing frequency.
Group-wide yields for the year-to-date were up 8.1% on the comparable period last financial year. Short Haul and Long Haul yields were up by 3.8% and 13.4% respectively. Removing the impact of foreign exchange, group-wide yields were up 4.4%.
NEW AIRCRAFT DELIVERIES
The only further new aircraft deliveries expected during the 2009 financial year are the final two Q300 turbo prop aircraft, which are due to enter the operating fleet in May and July 2009.
COMPANY NEWS
Air New Zealand to reduce Dunedin Tasman services
Air New Zealand confirmed that it is suspending its Dunedin-Sydney service from 16 April to 24 October 2009, whilst retaining its scheduled services to Brisbane.
Air New Zealand currently operates two services a week between Dunedin and Sydney, and two services a week between Dunedin and Brisbane. Dunedin-Brisbane will be reduced to one service a week during the traditionally low demand months of May and June before returning to two flights per week in July.
Air New Zealand to suspend Hamilton-Brisbane route
Air New Zealand announced that it is suspending its remaining trans-Tasman service into and out of Hamilton.
The airline announced in October last year that it was suspending services between Hamilton to Sydney and the Gold Coast during the traditionally lower demand period from 29th March to 24th October this year.
Air New Zealand to announce interim results
Air New Zealand will announce its interim results for the six months ending 31 December 2008 prior to the market opening on Thursday 26th February 2009.
A webcast will be available to view at www.airnewzealand.co.nz/aboutus/investorcentre/ from 11am.
Qantas exits and Jetstar enters the New Zealand domestic market
Qantas has made the long awaited announcement that it is exiting the New Zealand domestic market and replacing its capacity with budget carrier Jetstar.
[WPMID=15] has lead the in the low fare market including the introduction of grabaseat domestic and international fares as low as $1 and will compete vigorously with everyday low fares and a high level of service.
Frequency is a critical factor for domestic travellers and Air New Zealand offers more than 400 return services a week between Auckland, Wellington, Christchurch and Queenstown.
Air New Zealand has also invested in its domestic operation with a fast and simple check-in experience that has significantly reduced waiting times, an improved loyalty programme, built new lounges and significantly refurbished existing ones, introduced complimentary food and beverage onboard and new Space + seating for frequent flyers on main-trunk jet routes.
