Air NZ profit plummets

3:30 PM - By ELLEN READ

Air New Zealand's first half net profit has plunged to just $3.8 million from $127.2 million the previous year as a dismal performance by Ansett Australia, increased domestic competition in Australia, soaring fuel prices and weak Australasian currencies take their toll.

The airline, which is 30 per cent owned by Brierley Investments and 25 per cent owned by Singapore Airlines, said the outlook for the second half was uncertain and warned there could be a further squeeze on profits.