21 Apr 2010

Air NZ details loss from volcanic ash travel disruption

7:23 am on 21 April 2010

Air New Zealand says the disruption caused by the volcanic ash cloud across the United Kingdom is costing it $500,000 a day.

Air New Zealand's flights to the UK from Hong Kong and Los Angeles have not been operating since last Thursday, because of restrictions across UK-controlled airspace.

In an update to investors on Tuesday, the company said it was doing what it could to mitigate the cost.

First NZ Capital aviation analyst Jason Familton says the cost is in line with expectations, and although it will hit the carrier's bottom line, it will not hurt it significantly, as long haul flights to the UK are a relatively small part of its business and passengers will eventually be redirected through other routes.