3 May 2016

Air NZ's growth supported by record number of tourists

5:22 pm on 3 May 2016

Strong tourism will continue to support Air New Zealand's growth, but the company says increasing competition is a challenge.

Air New Zealand plane taking off from Wellington Airport.

Air New Zealand plane taking off from Wellington Airport. Photo: RNZ / Alexander Robertson

The national carrier has released an investor presentation.

Its profitability was being buoyed by the record numbers of tourists coming to New Zealand while lower fuel prices also helped make the outlook to continue to look favourable.

Travel routes closer to New Zealand would be a source of growth in passengers, including Australia and Asia, it said.

Its strategy would continue to invest in the business and keep a lid on costs, in order to maximise revenue and profits.

On the other side of the coin, some challenges in the near term included more competition.

While 2017 earnings were expected to be solid, they wouldn't be as strong as this year, the company said.

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