Air NZ Monthly Investor Update (August Op Stats)
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Air New Zealand Limited (NS) (AIR) | 10:12 am, Wednesday 1 October 2008 | AIR | 0.850 |
 -0.020 |
(-2.30%) |
MONTHLY INVESTOR UPDATE: 1 October 2008
CONTENTS
- August market conditions
- New aircraft deliveries
- Company news
- Operating statistics table - see release attached
AUGUST MARKET CONDITIONS
In August, Air New Zealand carried 952,000 passengers, down 1.8% on the same month last year. Overall year-to-date capacity grew by 2.1% on the comparable period last year.
In the Domestic market passenger numbers and load factors for the month were down on last August. This was the result of increased competition and general softening of demand. On an adjusted year-to-date basis Air New Zealand reduced capacity by 1.2% in the Domestic market.
In the Tasman / Pacific market, passenger numbers and load factors were down. This was also attributable to increased competition and weaker demand. Capacity increased by 2.4% as frequency and gauge were adjusted on routes with stronger demand.
In the Long Haul market, passenger load factors remained relatively high, at 81.9% despite an increase in capacity of 3.6%. Air New Zealand continues to closely monitor the level of demand and is proactively making schedule changes where necessary.
- Short Haul passenger load factors decreased by 2.7 percentage points to 72.3%
- Domestic passenger load factor was down 1.4 percentage points to 70.5%
- Tasman / PI passenger load factor decreased by 3.1 percentage points to 73.3%
- Long Haul passenger load factors decreased 0.8 of a percentage point to 81.9%
- Asia / Japan / UK passenger load factor was down 4.8 percentage points to 79.6%
- North America / UK passenger load factor increased by 2.3 percentage points to 83.7%
Group-wide yields for the year-to-date were up 7.3% on the comparable period last financial year. Short Haul and Long Haul yields were up by 6.0% and 11.0% respectively. Removing the impact of foreign exchange, group-wide yields were up 5.5%.
The 2008 financial year-to-date capacity and passenger numbers are not directly comparable with the previous period. This is due to two less days being captured in the July 2008 operating statistics compared to July 2007. We have made adjustments to the variance calculations to make the figures comparable year on year.
NEW AIRCRAFT DELIVERIES
The only deliveries expected during the 2009 financial year are the final two Q300 turbo prop aircraft, which are due to arrive in April and May 2009.
See attached document for table.
COMPANY NEWS
Air New Zealand adds more Premium Economy seats
Air New Zealand is to double the number of available Pacific Premium Economy seats on its fleet of eight 777-200ER aircraft in line with demand.
The aircraft are expected to be reconfigured by June 2009 and will have an additional 18 Pacific Premium Economy seats added taking the total available to 36.
It is the third Premium Economy capacity increase in two years, with Air New Zealand twice increasing the number of seats available on its Boeing 747-400 aircraft, now up to 39 Pacific Premium Economy seats.
Air New Zealand launches specialist aircraft interior design business
Air New Zealand has created a standalone company with 50 staff to capture opportunities in the global aircraft interior design business.
Altitude Aerospace Interiors uses leading-edge computer technology to design some of the most innovative and luxurious aircraft interiors in the world. The business will be staffed by Air New Zealanders with significant expertise in the design and installation of interiors for commercial aircraft and Boeing business jets.
The Auckland and Christchurch-based engineering consulting business, which began operations as a wholly-owned subsidiary on 25 August, has quietly built up its design expertise and client base and is now working with some of the biggest commercial airlines and manufacturers in the world.
Air New Zealand to fit winglets to reduce fuel, emissions
The 767 fleet, which operates to Australia, the Pacific Islands and Honolulu, will be fitted with winglets progressively from July next year. The work will be carried out by Air New Zealand Technical Operations and is expected to be completed by the end of 2009.
Air New Zealand estimates it will save more than NZ$7.5 million and cut CO2 emissions by 16,000 tonnes annually by fitting performance-enhancing blended winglets on to its five Boeing 767-300ER aircraft.
The winglets, developed by Aviation Partners Boeing, a joint venture of Aviation Partners Incorporated and The Boeing Company, are 3.4m high wing-tip devices which make the aircraft's wing more efficient by reducing the drag near the wing tip. This means the aircraft uses less fuel, and can climb faster.
Air New Zealand to install dryers to cut aircraft emissions
Air New Zealand will retrofit zonal dryers supplied by CTT Systems Inc of Sweden across four of its jet fleets to reduce fuel burn.
The electrically-powered dryers, mounted in the space above the ceiling or under the floor, reduce moisture trapped in insulation between the aircraft outer skin and cabin lining. They typically remove around 200 kilogrammes of water from each aircraft, which reduces fuel consumption.
World first to demonstrate potential to reduce carbon emissions by millions of tonnes
Earlier this month Air New Zealand and key aviation partners demonstrated the potential for the commercial aviation industry to reduce carbon emissions by millions of tonnes annually, with a test flight between Auckland and San Francisco.
The commercial Boeing 777 flight NZ8, re-named ASPIRE I, operated under optimum flight planning conditions through the involvement of partners Airways New Zealand, the Federal Aviation Administration and Airservices Australia.
The test flight made a 4600 litre fuel saving, approximately 4 per cent less fuel than normally used. This meant 9 tonnes less carbon dioxide was emitted into the atmosphere.
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