Tuesday 14th May 2013
|Text too small?|
Air New Zealand, the national carrier, is reviewing its flights from Japan after a decline in the yen made flights here more expensive, crimping demand.
"Significant depreciation of yen necessitated review of Japan capacity," the airline's chief financial officer Rob McDonald said in notes prepared for an investor presentation today. The airline wasn't immediately available for further comment.
Shares in Air New Zealand rose 1 percent to $1.515, and have gained 16 percent this year.
Last month the airline flagged its annual earnings will more than double this year, and it has previously signalled plans for a $110 million profit improvement from its long-haul services by 2015, which had been an underperforming part of the company.
The New Zealand dollar has surged 17 percent against the Japanese yen so far this year. The kiwi recently bought 83.96 yen, up from 71.62 yen at the start of the year, having touched a high of 86.43.
The New Zealand currency's outperformance can largely be attributed to diverging central bank policies with aggressive monetary easing in Japan contrasting with expectations the next move in New Zealand interest rates will be up. Bank of Japan Governor Haruhiko Kuroda is presiding over near-zero interest rates while New Zealand Governor Graeme Wheeler has rates at 2.5 percent.
No comments yet
Air NZ plans to raise stake in Virgin Australia to 25.9 percent after gaining approvals
Air NZ keeps balance sheet plump, holds back on dividends as fleet renewal looms
Air New Zealand plans to close Auckland maintenance facility, cut 180 jobs, union says
Air NZ's Safe Air unit cuts 84 jobs in Blenheim as contracts end
Air NZ agrees to settle cartel case, expects earnings at upper end of guidance
Air NZ lifts stake in Virgin Australia to 23 percent , may creep up to 26 percent
Air NZ backs down on challenge to cargo suit against regulator
Ex-Foodstuffs boss Carter to head up Air NZ board
Air NZ shares jump 5.6 percent as airline flags annual earnings to more than double
Air NZ 1H profit soars