The Front Page Air NZ cuts: Dark days loom for tourism?
Jan 30, 2019
16:32
Air New Zealand's boss is vowing to be directly involved in looking at the airline's books.
The national carrier has cut its pre-tax earnings guidance to a range of $340 million to $400 million for the June year, due to slower-than-expected revenue growth.
The previously announced guidance was for underlying earnings before tax of $425m to $525m.
Air New Zealand's share price took a tumble in the opening minutes of trade this morning.
In an internal email to staff, Christopher Luxon said the revised guidance reflects updated revenue forecasts based on recent forward booking trends but that "difficult decisions" lay ahead.
Luxon did not specifically mention job cuts. He said markets showing signs of slower growth include domestic leisure travel and softening inbound tourism traffic. Luxon says he's committed to turning things around.
Also today: National's proposed tax plan is set to give the average worker an extra $430 a year, the Housing Minister plans to "re-calibrate" the KiwiBuild policy, and Hellers has been fined $40,000 after three children suffered allergic reactions due to mislabelled Sizzlers.
The national carrier has cut its pre-tax earnings guidance to a range of $340 million to $400 million for the June year, due to slower-than-expected revenue growth.
The previously announced guidance was for underlying earnings before tax of $425m to $525m.
Air New Zealand's share price took a tumble in the opening minutes of trade this morning.
In an internal email to staff, Christopher Luxon said the revised guidance reflects updated revenue forecasts based on recent forward booking trends but that "difficult decisions" lay ahead.
Luxon did not specifically mention job cuts. He said markets showing signs of slower growth include domestic leisure travel and softening inbound tourism traffic. Luxon says he's committed to turning things around.
Also today: National's proposed tax plan is set to give the average worker an extra $430 a year, the Housing Minister plans to "re-calibrate" the KiwiBuild policy, and Hellers has been fined $40,000 after three children suffered allergic reactions due to mislabelled Sizzlers.
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