Air New Zealand to cut hundreds of jobs

Air New Zealand plans to cut hundreds of jobs after a 71% drop in its half-year profit.

New Zealand’s national carrier announced today it plans to reduce its work force by 441 people – 175 through lay-offs and the rest through attrition. The airline has a staff of 11,500.

The airline said its profit before tax for the six months ending December 2011 was down more than two-thirds to NZ$33m (€20.6m).

In a statement, the airline blamed a weak global economy and the high cost of jet fuel for the result, but said its overall position remains strong and it will keep paying shareholders a dividend.

The company’s chief executive, Rob Fyfe, announced last month he will retire effective December to pursue other opportunities.