Air New Zealand blames profit dip on engine issues, fuel

WELLINGTON, New Zealand (AP) — New Zealand’s national carrier says increased fuel costs and engine problems were the main reasons why its annual profit dropped by more than 30%.

Air New Zealand on Thursday reported a pre-tax profit of 374 million New Zealand dollars ($239 million) for the year ending June 30, compared to NZ$540 million in the previous year.

Annual revenue grew by 5.3% to NZ$5.8 billion.

Chairman Tony Carter says the airline is disappointed it didn’t meet the earnings forecast it set at the start of the financial year, but nevertheless achieved a solid result in the face of slowing demand.

The airline says it faced a temporary increase in operating costs due to the global problems experienced with certain Rolls-Royce engines used on the Boeing 787 Dreamliner planes.

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