Air New Zealand’s yields remain depressed in Jan-2010

Air New Zealand's yields remained depressed in Jan-2010 despite strong capacity reductions, reversing the yield improvements witnessed in Dec-2009. Group yields fell 10.4% last month year-on-year, or by 6.6% removing the impact of foreign exchange. This compares to year-to-date (seven months to Jan-2010) reductions of 9.8% and 10.2%, respectively. However, these latest contractions come off a very high base (with yield growth peaking in Feb-2009, prior to the last year's spectacular falls).