Air NZ to cut jobs as fuel prices bite

Air New Zealand is cutting deeper into its work force to stay ahead in a “brutal” aviation industry facing sustained high fuel prices.

The airline has reported a 55 per cent fall in first-half net profit to $NZ46 million ($A41.26 million) and announced another 470 jobs would go, this time at its corporate head office.

Executives said the profit was savaged by fuel costs blowing out by NZ$174 million or 36 per cent in the six-month period, labour costs increasing by $NZ37 million and fleet transition costs of $NZ35 million.

That detracted from growth in yield and traffic in the half of $NZ136 million.

The Age