Air New Zealand chief executive Rob Fyfe's bonus payment for the year is set to rise despite the company's profit plummeting.
The company announced earlier this week its net after-tax profit has fallen 90% from $218 million to $21 million, reflecting a decline in passenger numbers and volatile fuel prices.
Underlying profit fell 19% to $118 million as the airline cut prices, and slashed costs and flights to cope with an 8% decline in passenger demand.
Though Mr Fyfe's salary is capped at $1.2 million, which is what it was in 2007, his performance incentive payment will rise to $1.2 million. He received a bonus of $287,000 last year.
Earlier this year, Mr Fyfe took a 20% pay cut as global markets deteriorated
He says the board's decision to pay performance incentives is based on how the company performed - no matter what the market conditions have been.
