Air New Zealand cuts 5% of its flights as job losses loom
Air New Zealand has cut 5% of its global flight schedule, citing a sharp jump in jet fuel costs. Chief executive Nikhil Ravishankar said some international routes would also be dropped. The carrier expects a full-year loss of nearly NZ$400 million.
Air New Zealand has announced it will cut 5% of its global flight schedule. The carrier said the main reason was the sustained rise in jet fuel costs since the start of the war involving Iran. Chief executive Nikhil Ravishankar said the airline was working on which international routes would be dropped.
Ravishankar said staff cuts were also possible, but the scale of any layoffs would only be set once route planning was complete. An internal memo said long-haul flight frequencies would be reduced first. Air New Zealand told investors it expected a full-year loss of between NZ$380 million and NZ$420 million, one of its worst results in a decade.
The New Zealand Aviation Union said the move was abrupt and called on the government to intervene. Shares fell by close to 6% on the Auckland exchange. Other Asia-Pacific carriers such as Qantas and Cathay Pacific have also flagged pressure from higher fuel costs; similar steps could follow across the industry.
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