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Air New Zealand to cut routes and frequencies after the earthquakes

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New Zealand's flag carrier announced possible services cutting after two major earthquakes hit Christchurch and northern Japan. Passenger numbers falling 30 percent.

Last week the airline introduced a 7 percent fare increase due to rising prices of fuel.

Costs rising, passenger numbers declining

In order to cope with the increasing fuel costs and declining numbers of passengers, Air New Zealand is about to cut selected services. Which frequencies are to be reduced or routes to be canceled is yet to be announced. The stock market has already reacted by sending the shares 10 percent lower. The expected profits for the second half of the year are already wiped out by the two natural disasters.

747 service to Tokyo in danger

It was only last month, when Air New Zealand introduced the Boeing 747 service to Tokyo. A move demonstrating the airline's strong belief in Japanese tourism market. Chief executive Rob Fyfe told in a radio interview that there were only up to 80 passengers on Monday's flight to Tokyo. He added that the airline is expecting the passenger numbers on this route to go down by about 30 percent. No word on scraping the 747 service yet.

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