Air New Zealand – £94 million
In fact the figures are likely to be higher than that (I believe £94 million’s for the first half of the year, where as the figures I gave were for the first 3/4). New Zealand benefits from the fact it’s a Pacific island so is predominantly a long haul airline, that’s where the majority of the profit is made by the full service carriers these days.
And with regard to AF/KLM, their biggest problem (mainly lying with AF) is they’re trying to compete with the LCCs (namely easyJet) and failing miserably. For example, when easyJet announced it’s new Nice and Toulouse bases in 2012 – less then 2 weeks later, Air France had announced it shall also open bases at the airports, perhaps in an attempt to retain its share of the French market. However, AF simply can’t compete on fares on like-for-like routes with easyJet (especially given these markets are predominantly tourist rich) and is as a result losing literally millions. Well that’s my take anyway, they’re putting too much into trying to grow their regional market and not enough into their core market in Paris.
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