Summary Box: Air New Zealand profit up despite fewer passengers as fuel hedging losses shrink

Summary Box: Air New Zealand profit jumps

FLYING HIGH: Air New Zealand’s annual profit jumped almost fourfold as the carrier posted smaller losses on fuel hedging contracts and cut costs, offsetting subdued demand for air travel.

RESULTS: Net income rose to 82 million New Zealand dollars ($58 million) for the year ended June 30 from NZ$21 million the year before. Fuel hedging losses dropped to NZ$8 million from NZ$130 million.

BACKDROP: Uncertainty surrounding the global economic recovery continued to suppress demand for air travel. Air New Zealand said reduced demand and lower ticket prices significantly reduced passenger revenue, but sales are starting to improve.