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Air NZ 2016 net profit up 154pc to US$242 million as cargo rises 9pc
AIR New Zealand's annual net profit rose 154 per cent in FY2016 to NZ$338 million (US$242 million), drawn on revenues of NZ$2.7 billion, up 12 per cent year on year.
"New Zealand is a primary producer of perishable products and innovative manufacturing," said Air New Zealand cargo chief Rick Nelson.
"New Zealand has a strong reputation for high quality products and, as a result, we have seen increased volumes of cargo,?said Mr Nelson to explain the outstanding performance.
"Equally, as New Zealand establishes or enhances trade agreements globally, we see an evolving and growing level of cargo," he said.
The strong performance was also attributed to lower fuel prices, and cargo volumes rising nine per cent, 1.6 per cent higher yields, and revenue growth of 21 per cent, particularly on Pacific long-haul services and into Singapore, reported New York's Air Cargo News Flying Typers.
Mr Nelson said the airline's freight business had also been impacted by global declines in cargo yields. But he insisted that upgrading products rather than cutting prices and services had helped retain competitiveness.
"Our diversification of cargo product globally, with a focus on high quality products and services, through understanding customers' needs and developing appropriate solutions, has helped reduce the potential impact on yields," he said.
"A new ULD handling system, which will shortly go live, is a significant investment in cargo efficiency and will further differentiate our cargo operations from competitors."
The carrier has also benefited in the past year from expanding its network to include Buenos Aires, Ho Chi Mink City and Houston. New services have also been announced to Manila and, in November, flights will resume to Osaka.
"New Zealand is a primary producer of perishable products and innovative manufacturing," said Air New Zealand cargo chief Rick Nelson.
"New Zealand has a strong reputation for high quality products and, as a result, we have seen increased volumes of cargo,?said Mr Nelson to explain the outstanding performance.
"Equally, as New Zealand establishes or enhances trade agreements globally, we see an evolving and growing level of cargo," he said.
The strong performance was also attributed to lower fuel prices, and cargo volumes rising nine per cent, 1.6 per cent higher yields, and revenue growth of 21 per cent, particularly on Pacific long-haul services and into Singapore, reported New York's Air Cargo News Flying Typers.
Mr Nelson said the airline's freight business had also been impacted by global declines in cargo yields. But he insisted that upgrading products rather than cutting prices and services had helped retain competitiveness.
"Our diversification of cargo product globally, with a focus on high quality products and services, through understanding customers' needs and developing appropriate solutions, has helped reduce the potential impact on yields," he said.
"A new ULD handling system, which will shortly go live, is a significant investment in cargo efficiency and will further differentiate our cargo operations from competitors."
The carrier has also benefited in the past year from expanding its network to include Buenos Aires, Ho Chi Mink City and Houston. New services have also been announced to Manila and, in November, flights will resume to Osaka.
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