Source: Radio New Zealand
File photo. AFP
Air New Zealand is set to cancel around 1100 flights affecting thousands of passengers through until early May.
Air NZ chief executive Nikhil Ravishankar told Morning Report between now and the end of April, early May the airline will cancel around 1100 flights.
That would amount to about a 5 percent reduction in the number of flights it was planning to operate.
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In that period the airline will carry around 1.9 million passengers, so 44,000 passengers will be affected by flight cancellations, he said. Most of the passengers will be moved to flights on the same day.
Nikhil Ravishankar will take over as Air New Zealand chief executive in October. Supplied / Air NZ
Ravishankar said he has spoken to “all regional mayors” about their concerns regarding regional services and has their support.
He said the airline was looking at reducing a small number of international services, but said US services are an important link to Europe, particularly while there were disruptions in the Middle East.
Air New Zealand is facing more massive cost pressures, with the conflict in the Middle East increasing the price of jet fuel.
This week the airline suspended its earnings guidance and increased ticket prices to account for the rise in fuel costs. Domestic fares will increase by $10, short-haul international by $20 and long-haul by $90.
On Wednesday, Qantas and Jetstar also confirmed they were increasing airfares due to a doubling in the cost of aviation fuel.
Last month, Air NZ announced a half-year loss of $40 million in the six months ended December, compared to last year’s profit of $106m.
The critical Hormuz Strait, a shipping route for up to 20 percent of the world’s oil, is essentially closed due to the conflict in the region.
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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand