June 19, 2017 / 9:03 PM / 9 months ago

Air New Zealand wins contract to service U.S. Navy engines

WELLINGTON (Reuters) - Air New Zealand (AIR.NZ) said on Tuesday that it had signed four contracts with the U.S. Navy worth up to $42 million to service its fleet’s gas turbine engines.

The airline said in a statement to the New Zealand stock exchange that its Auckland-based gas turbine repair unit would provide maintenance and servicing of the U.S. Navy’s engines over the next few years.

Chief Operations Officer Bruce Patton said the contract was an “important win for the airline” and that it had taken part in a competitive bidding process.

The airline also said that the number of passengers it carried in May rose 8.7 percent from the same month a year earlier, to 1.16 million as New Zealand experiences a tourism boom.

However, the company said its revenues per available seat kilometer fell 6.8 percent when removing the impact of the currency exchange rate.

    The airline did not change its outlook announced at its Investor Day at the beginning of June that earnings before taxation were likely to be more than NZ$525 million ($379.47 million)in the full-year 2017, up from its prior forecast of NZ$475 million to NZ$525 million.

    Reporting by Charlotte Greenfield; Editing by Larry King and Leslie Adler

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