Concern about Air New Zealand's ability to profitably fill capacity increases as economies weaken and competition increases has weighed on its shares

29 Aug 2015 04:54:07

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Air New Zealand's share price has dropped 16 per cent in the last three months and nearly six per cent since announcing a record $327 million net profit this week and indicating a significant earnings uplift for the 2016 financial year.

Deutsche Bank analyst Chris Byrne said in a research note that the negative reaction to the 2015 full-year result suggested the market was disappointed no special dividend was announced and remains concerned about the airline's ability to profitably fill capacity increases over the next year as economic activity weakens and competition increases.

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