AIR NZ RECORDS FULL-YEAR PROFIT

SYDNEY, Australia (ABC News Online, Aug. 28) -Air New Zealand
has announced a significant profit completing a remarkable turnaround from its
last financial year but the airline says its long-term survival is still under
threat.

Air New Zealand has posted a full-year net profit of around $150
million.

That compares with a loss of nearly $300 million just a year
ago.

But airline chairman John Palmer says the collapse of carriers
overseas should serve as a warning that future positive results are far from
guaranteed.

"The turnaround from profitability to bankruptcy for many
of these airlines was very rapid," Palmer said.

Despite launching a successful discount trans-Tasman service and
increasing its dominance in its domestic market, Air New Zealand says it still
needs an alliance with Qantas to prosper.

September 1, 2003

ABC News Online: http://abc.net.au/news/