Profit down

Press, 27 July 1988, Page 8

Profit down

PA Wellington Air New Zealand recorded a net profit after tax of $70.4 million last financial year, down from the previous year’s record figure of $178.9M, according to the airline’s annual report, released yesterday.

The airline’s chairman, Mr Hugh Fletcher, said the dominant feature during the year was the greatly increased competition for both domestic and international activities.

Turnover increased from $1530M to $1552M, while group operating profit fell to $68.7M from the previous year’s SIOBM.

Net profit before tax was $75.6M ($210.6M), while passenger kilometres flown increased to 9743 million from 9009 million.

Mr Fletcher said the 1987 record net profit after taxes had benefited from asset sales of $102.5M, principally aircraft sales. . Mr Fletcher said the airline welcomed the Government’s intention to sell shares in Air New Zealand, as it would allow it to strengthen its strategic position. “The international airline industry worldwide is becoming increasingly polarised and it is desirable for Air New Zealand to have strong partners and compatible alliances if it is to remain a major player,” he said. “In this * respect, strengthened access to the northern hemisphere markets is an important consideration.”

“It has seriously affected margins on the Pacific for all carriers.”