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.
Copyright © 2020 The Associated Press. All rights reserved. This material may not be published, broadcast, written or redistributed.