Advancing, Australia fares

[Gerald A]

Air New Zealand deserves large credit for its year-end results this past week. Given the traumas of the global aviation industry, a drop in profit of only 32 percent is testament to its new-built resilience in the face of unprecedented economic and market stress.

http://www.stuff.co.nz/stuff/4675566a1865.html

[D Chan]

Originally Posted by Gerald A

http://www.stuff.co.nz/stuff/4675566a1865.html

With all due respect things only looked especially bad in around the last 6 months. Taking into account of last financial year, the 'bad' months would've only been 3 of the 12 months of last financial year. If my memory is correct, 6 months or so ago the oil price was still at around 110 dollars us a barrel.

Besides, most airlines wouldve hedged their fuel purchases. As these contracts at significantly lower (than current market) prices run out or expire - that's when the real test begins.

I think next year's annual result figures are much better indicators of how much 'credit' an airline deserves in weathering the current 'storm'