Big fall in numbers for Air NZ

Passenger numbers are down across the board for the national carrier.

Passenger numbers on Air New Zealand's Tasman and Pacific routes were almost 10 per cent down last month, compared to October 2007.

The passenger load factor on the routes also fell, dropping 7.3 percentage points to 76.2 per cent, figures released today by the airline show.

Chief executive Rob Fyfe previously said that as the global credit crisis deepened, its impact on demand was emerging as a major concern for the aviation industry.

Today's figures show that overall, Air New Zealand carried 971,000 passengers in October, down 1.8 per cent on a year earlier.

During the month the airline's capacity was cut by 1.5 per cent on October 2007, while the passenger load factor fell 1.9 percentage points to 76.7 per cent.

Despite the gloom, the number of passengers carried on domestic routes last month lifted 1.8 per cent from a year earlier to 623,000, and the passenger load factor was 1 percentage point higher at 73.3 per cent. Capacity was 1.9 per cent higher.

In the long haul market the passenger load factor remained stable as capacity was effectively managed by a 3 per cent reduction in seats, Air New Zealand said.

Long haul passenger numbers were down 3.6 per cent to 132,000, with North America/Britain routes showing signs of weakness as passenger numbers fell 6.5 per cent. Passenger numbers for Asia/Britain and Japanese routes were flat.

Air New Zealand said its scheduled international capacity was forecast to be down 13 per cent in the fourth quarter of the 2009 financial year compared with the same period last year.

In an update today chief financial officer Rob McDonald said demand was uncertain but was clearly weaker across all markets, with the Tasman specially difficult.

Benefits from lower jet fuel prices would be more evident in the second half, he said.

Air New Zealand shares were up 4c to 88c in early trade today, having ranged between 80c and $2.02 in the past year.

- NZPA