Air New Zealand is expecting to make profits in the coming financial year, after a year of losses.
As demand for air travel returns, the airline is forecasting pre-tax earnings of between $200m and $275m. This is in contrast to last year’s loss of $367m.
However, the airline cautioned that the forecast was dependent on sales and jet fuel prices remaining at current levels.
“The airline notes that fuel prices remain highly volatile and that this is one of many factors that have the potential to slow our recovery and significantly impact earnings,” it said in a press release.
“Additionally, demand in the second half of the financial year remains highly uncertain.”
Air New Zealand shares rose more than 8 percent to a five-month high of 73.5 cents.
