Qantas, Air NZ flag brighter outlook after price war hits profits

Sydney

QANTAS Airways Ltd and Air New Zealand Ltd reported first-half profit declines as an expansion in capacity by rivals hit international airfares, but both airlines said they expect the fierce competition to moderate.

Shares in the carriers climbed as Air New Zealand said that it was already seeing a reduction in flights by Chinese competitors while Australia's flagship carrier forecast a much slower pace of growth in capacity in the second half.