Forward booking trends for Air NZ indicate slowing revenue growth.
Air New Zealand has just advised that it now expects pre-tax earnings of NZ$340m-$400m for the year to 30 June 2019 – about $100 million lower than previous forecasts.
The carrier said the revised guidance reflected updated revenue forecasts based on recent forward booking trends. Markets showing particular softness include leisure travel within domestic NZ, as well as softening inbound tourism traffic.
Other issues for the business include the ongoing impact of the Rolls-Royce engine problems on the Air NZ Boeing 787 fleet, but this is expected to improve as the year progresses.
CEO Christopher Luxon said the airline had commenced a review of its network, fleet and cost base “to ensure the business is on a strong footing going forward”.
More details in today’s issue of Travel Daily.