Air New Zealand – Profit and Competition Bring Lower Fares

Air New Zealand’s passengers will be hoping that the airline’s recently announced record annual profit of $214 million, coinciding with the introduction of increased domestic competition from Pacific Blue, should result in further fare reductions. Air New Zealand has announced that travellers can expect some fares as low as $1 on domestic services.

The airline has also announced that it will be reconfiguring 16 of its 737s as part of a revised service that will offer more room and complementary in-flight service to business frequent flyers in the front of the aircraft, and budget seating and a “user pays” food and beverage service for passengers in the rear.

Chief Executive Rob Fyfe also promised a simplified fare structure for domestic flights and special deals such as “buy one, get one free” child fares.

Air New Zealand’s $214 million profit is up 123% on the previous year’s result of $96 million in spite of a $165 million increase in the price of fuel during that period.