Source: Radio New Zealand
Generic plane. Air New Zealand at Wellington airport. RNZ / Rebekah Parsons-King
Air New Zealand has suspended its earning guidance amid what it calls unprecedented volatility in global jet fuel markets.
The airline expects a meaningful impact on its second half earnings.
After implementing initial fare changes, it says it may need to take further price action and adjust its network if the conflict leads to continued high jet fuel costs.
Air New Zealand shares had fallen nearly 8 percent on Monday.
Oil prices are up about 8 percent to US$99.90 a barrel, after climbing to a high of US$119.50 a barrel overnight, its biggest-ever absolute price jump in a single day.
Reuters reports that some jet fuel prices have doubled since the start of the conflict putting pressure on carriers already having to reroute to avoid the Middle East conflict and cater to thousands of stranded passengers trying to leave the region.
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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand
