=20 ---------------------------------------------------------------------- This article was sent to you by someone who found it on SF Gate. The original article can be found on SFGate.com here: http://www.sfgate.com/cgi-bin/article.cgi?file=3D/news/archive/2003/08/27/f= inancial2131EDT0356.DTL ---------------------------------------------------------------------- Wednesday, August 27, 2003 (AP) Air New Zealand reports first profit in four years RAY LILLEY, Associated Press Writer (08-27) 18:31 PDT WELLINGTON, New Zealand (AP) -- In a sharp turnaround, Air New Zealand on Thursday posted annual net income of $94 million, its first profit in four years. The result marked a $275 million turnaround in the past year, after the ailing carrier had a loss of $181 million in the year ending June 30, 2002. Air New Zealand was facing bankruptcy at the end of 2001 after the collapse of its Australian subsidiary, Ansett Australia, and the industry slump after the 2001 terrorist attacks. It was bailed out by the government, which paid $502 million for an 82-percent stake in the company. Chief executive Ralph Norris said Thursday the profit, which exceeded analyst expectations, was driven by a stronger local currency and the successful launch of discount domestic airline services. He said the carrier's financial year began with a strong rebound in dema= nd for travel after 2001. The second half showed a decline in traffic after the deadly SARS outbreak in Asia and the war in Iraq. Responding to the downturn, the company cut international capacity by eight percent by canceling flights to Hong Kong, Singapore, Japan and Taiwan. Chairman John Palmer said the airline's future depended on its proposed alliance with Australian carrier Qantas Airways receiving regulatory approval from competition watchdogs. Competition regulators in both countries rejected the carriers' initial alliance plan. A final ruling from the New Zealand Commerce Commission is due by Sept. 30. =20 ---------------------------------------------------------------------- Copyright 2003 AP