Air New Zealand only makes NZ$9 per passenger for the FY 2024 year – that is the stark reality of the airline industry.

And that reality is that airlines are a very tough business and hardly an industry for fare gouging.

The airline has faced a range of disruptions with a shortage of engine parts, fuel costs and inflation just to name a few.

Yet the headlines trumpet another story….”Record high airfares”, ”High airfares weigh on Kiwis” and “Are airfares really getting cheaper?”.

But looking more closely at the numbers and they tell a very different story.

According to Stats NZ the average weekly earnings in New Zealand has increased by 90% since June 2006.

In the same period the domestic air index has risen by 55% from 963 to 1496 and the international airfare index by 17% from 1140 to 1339.

In other words when compared to average weekly earnings air fares have gone down.

Certainly, there will be peaks and troughs just through a normal year as travel demand changes with the season and holidays.

But overall, the airline is making a nett profit of just $9 for the last financial year.