Air New Zealand's yields continue to slide, more capacity cutbacks coming

Air New Zealand's yields continued to deteriorate last month, despite a hefty reduction in capacity. According to The Centre's estimates, Air New Zealand's group yields (excluding exchange rate influences) slumped 5.3% in May-2009, even as group capacity was slashed by 13.9%. Including exchange, group yields rose 1.1% year-on-year - down from +11.7% as recently as Jan-2009. Group load factors rose 2.2 ppts in May-2009.