Air NZ cuts capacity on long-haul routes as demand dwindles

Total capacity fell 7.5% in December, while total passengers carried dropped 5.1% to 1.24 million, the Auckland-based carrier said in a statement. Passenger numbers on routes to the U.S. and U.K. tumbled 15% to 102,000.

The airline's shares fell 2% to 90 cents and have dropped 50% in the past 12 months. The company in November announced it would cut 200 positions, with half of them made up of long-haul cabin crew, reflecting reduced demand. The reductions would generate annualized savings of about NZ$20 million, chief executive Rob Fyfe said on Nov. 19.

Passengers of flights across the Tasman Sea fell 5.6% and domestic passengers dropped 2.9% in December, according to its statement today.

Air New Zealand reduced long-haul capacity by about 12%.

By Jonathan Underhill

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