High fuel prices, a weak new Zealand dollar and increased operational costs resulted in Air New Zealand's profit plunging by 34% to $152million for its half year to December. The national carrier's half-year "headwind" fuel costs hit $131million, compared with a $135million headwind for the whole of 2018. Aside from fuel costs up 38%, labour costs rose by 5.8% and aircraft operations, passenger services and maintenance costs rose by 13%: up by $83million to $698million. Mrs Kinnaird said the 35% profit before tax decline reflected the higher fuel costs. The total $179million fuel cost was only partially offset by fuel hedging gains of $15million, taking the cost to $131million, while the weaker New Zealand dollar impacted fuel costs by $40million.

Source: Otago Daily Times February 28, 2019 15:22 UTC