NZPARob Fyfe
Air New Zealand CEO Rob Fyfe believes the demand for air travel will get worse, though the company is not changing its profit guidance.
Fyfe is currently in Malaysia at a meeting of the world's airlines - the annual International Air Transport Association's general meeting.
His comments are in line with other industry executives at the meeting who believe the demand for air travel could decline further despite signs of a more stable economy.
"The question is how long this phase of low demand continues," he says.
Air New Zealand has cut capacity by 15% this quarter but expects to make a profit in June and has left profit guidance for this year unchanged.
Fyfe says its plane orders also remain in place, saying it is a good time to buy aircraft.
Airlines around the world have cut capacity and jobs in response to a slide in profits, and some have delayed or cancelled orders from aircraft manufacturers Boeing and Airbus.
Fyfe says weaker travel demand, rising unemployment and surplus capacity would continue to impact the industry's profitability with the full impact of the downturn unlikely to be seen until the traditionally weak northern hemisphere winter.
Fyfe is currently in Malaysia at a meeting of the world's airlines - the annual International Air Transport Association's general meeting.
His comments are in line with other industry executives at the meeting who believe the demand for air travel could decline further despite signs of a more stable economy.
"The question is how long this phase of low demand continues," he says.
Air New Zealand has cut capacity by 15% this quarter but expects to make a profit in June and has left profit guidance for this year unchanged.
Fyfe says its plane orders also remain in place, saying it is a good time to buy aircraft.
Airlines around the world have cut capacity and jobs in response to a slide in profits, and some have delayed or cancelled orders from aircraft manufacturers Boeing and Airbus.
Fyfe says weaker travel demand, rising unemployment and surplus capacity would continue to impact the industry's profitability with the full impact of the downturn unlikely to be seen until the traditionally weak northern hemisphere winter.
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