Air New Zealand cuts 441 jobs

Last Updated: Fri, 24 Feb 2012 11:29:00 +1100

Air New Zealand will cut 441 jobs and slash costs after announcing a 61 per cent slump in first-half net profit to $AU23 million.

The airline said the jobs will go by the end of June as it seeks to improve profitability.

Chief executive Rob Fyfe said rising fuel costs and weak demand in Japanese and European markets were behind the result.

"The price of jet fuel has doubled over the last three years but a weak global economy is hindering our ability to pass on these higher fuel costs to passengers," Mr Fyfe said in a statement.

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