Virgin Blue’s profit warning of 24-Jan-2011 has not daunted analysts’ confidence in the airline, with Virgin Blue’s long-term strategy continuing to receive praise from the broking sector, despite short-term challenges including jet fuel prices and the slowdown in consumer spending (AFR Financial Review, 27-Jan-2011) Outlook from the banking sector is that its strategy of forging alliances with airlines including Etihad, Delta and Air New Zealand will pay dividends from 2012.
Virgin Blue's profit downgrade shrugged off by brokers
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United Airlines reduces seasonal capacity in the competitive US-New Zealand/Australia market
After rapid growth in the market between North America and Australia/New Zealand, an airline has finally blinked: United Airlines will change its sole New Zealand service, San Francisco-Auckland, to only operate seasonally. United will rely on its JV partner Air New Zealand.
Auckland is less important for United than for American Airlines and its codeshare (but not JV) partner Qantas. Qantas has exited the Auckland-Los Angeles market, so American's entry to New Zealand gives it two nonstops from both Australia and New Zealand, enhancing presence across the region and making it easier to bring American visitors to both Australia and New Zealand.
United's adjustment to a seasonal service will mean that the New Zealand-North America (excluding Hawaii) market will expand by a reduced 10% instead of 17%. Even with this downward change there will be 17% more capacity than in the previous record year of 2008.
Australia and New Zealand hit highs in 2016, but 2017 will lose a little lustre
Australia and New Zealand enter 2017 on a different level from 12 months previously. The biggest change, not just compared to 2016 but since the global financial crisis, is that Qantas is revelling in a successful turnaround.