Profits fall at Qantas and Air New Zealand

Both carriers post profit falls of 25%, blame capacity
Both Australia’s Qantas Airways and Air New Zealand have posted first-half net profit declines of around 25%, with the two separate airlines blaming the same problem – over-capacity.
Qantas posted a profit fall to AU$515 million (€375.4 million), with underlying profit before tax down 7.5% to AU$852 million. Total revenue for the six months to the end of December was AU$8.18 billion, down 3.3%.
Profitability in its international division was hit by “the high levels of capacity growth affecting all major airlines, but it achieved significantly higher margins than the industry average.”
Qantas group carried 2% more passengers during the period, to 26.76 million, but its low-cost subsidiary Jetstar saw 15% more pax.
Meanwhile, Air New Zealand posted a 24% drop in first-half net profit to NZ$256 million (€174.7 million), with operating revenue down 4.2% to NZ$2.54 billion. It carried 8.1 million passengers in the period.
It blamed competitors for bringing “unprecedented competitive capacity” into the market.