AIR has performed strongly returning over 23% since ATM added it to its NZ portfolio In September 2015. AIR benefits from a strong relationship with ATM’s core thematics (growth in NZ tourism). Its impressive performance has been aided by a falling oil price, but importantly it has also experienced major growth in its passenger capacity from continual improvements to the New Zealand tourism sector. AIR’s passenger growth for November was up 8.7% compared to last year and this continues a trend over much stronger numbers for the company.
We believe the growth is a result of a combination of factors. With oil falling, travel costs are declining and therefore driving higher volumes for passengers. In conjunction with this, the falling NZD is making NZ a more attractive as a tourist destination. The increased number of travellers to NZ bodes well for AIR as it is a major carrier of passengers to and from NZ.
Finally, AIR has under taken an ambitious growth strategy, both in...