WELLINGTON, March 10 (Xinhua) -- Air New Zealand warned on Tuesday that surging jet fuel prices will deal a meaningful blow to its second-half earnings.
The national carrier has suspended its full-year profit guidance just weeks after issuing it, as the escalation of conflict in the Middle East drives unprecedented volatility in global energy markets.
The airline said in a statement on the New Zealand's Exchange that jet fuel prices surged from roughly 85-90 U.S. dollars per barrel before the conflict to between 150-200 dollars in recent days, while refinery margins, or the "crack spreads," widened dramatically from 22 dollars to as high as 115 dollars per barrel.
In February, the airline forecast second-half earnings would be broadly in line with, or modestly below, its first-half loss of 59 million NZ dollars (about 35 million U.S. dollars), assuming an average jet fuel price of 85 U.S. dollars per barrel.
The carrier has implemented initial fare adjustments and warned it may need to further hike prices and adjust its network and schedule if elevated costs persist. Enditem
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