Old Jan 5, 21, 10:59 am
  #14  
sbiddle
 
Join Date: Apr 2013
Location: New Zealand (most of the time)
Programs: Air NZ Elite *G, Honors Gold, IHG Platinum Elite
Posts: 5,035
Originally Posted by cavemanzk View Post

Sure they are losing $2million a day, although assume that is mainly from International? Sure my domestic is now breaking even at the moment.
It doesn't matter where the airline is losing their money - they're losing money and domestic services are now the bulk of their revenue so they have no choice but to try and recover these losses from domestic flights.

It's pretty clear that the response from Air NZ has been some significant reallocation of fare buckets to in effect push average pricing up, remembering that prices themselves have not actually changed. Some routes are definitely not seeing the same allocations of lower tier fare buckets that were available previously even for bookings well in advance.

There also seems to be a massive number of changes happening last minute on many routes. As we know Air NZ domestic prices can change to to around half a dozen times per day based on their revenue system making last minute changes to try and maximise revenue. It's not uncommon to see prices dropping significantly in the 24 - 48 hours before a flight, and with every flight at present being flexible this offers plenty of opportunity for savvy people to rebook at a much cheaper price.
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