Air New Zealand notes 'some near-term challenges' but 'strong underlying demand'

Air New Zealand noted (03-May-2016) "some near-term challenges ahead" including the unknown impact of increased competition and foreign exchange hedges. The carrier noted 2017 earnings would be solid "while not at the level of 2016," but reported "strong underlying demand is expected to drive supply and demand equalisation with a return to stable yields." Of an 11% expected capacity growth in FY2016, the carrier noted 64% is coming from growth in new routes while the remaining 36% from growing existing routes. [more - original PR]