Air New Zealand has released its passenger traffic numbers for March 2022. The airline flew 624,000 passengers in the month, up considerably from the 481,000 passengers who flew Air New Zealand in February. Eighty-two percent of those March passengers traveled on domestic services. While that doesn't leave much left over for Air New Zealand's international operations, there are some signs of life there as well.

In March, Air New Zealand had 1.16 million available seat kilometers (ASMs) and sold 705,000 of those available kilometers, resulting in a 60.7% load factor. In contrast, in February, Air New Zealand had 801,000 ASMs and sold 358,000 of them for a network-wide load factor of 44.7%. While passenger numbers remain down compared to pre-pandemic levels and even early 2021 levels, this time around, the recovery is on firmer footing. With New Zealand starting to welcome back international travelers, the numbers will now keep improving.

By March, New Zealand was allowing its citizens and permanent residents to head home without having to worry about competing for limited quarantine beds. It was the first step in New Zealand reopening its borders. It also put some lift under Air New Zealand's beleaguered international passenger ops. Air New Zealand flew 21,000 passengers on its trans-Tasman and short-haul South Pacific flights in February. In March, that number jumped to 92,000.

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Air New Zealand's international operations are finally showing signs of life. Photo: Brisbane Airport Corporation

International passenger numbers pick up in March

Elsewhere across Air New Zealand's international network, passenger numbers jumped from 6,000 in February to 20,000 in March. On percentage terms, these are big increases. In raw number terms, they are still low. Passenger numbers on flights to and from Asia increased from 2,000 to 5,000 over February and March - a 150% increase. Passenger numbers to and from North America increased from 5,000 to 15,000 - a 200% rise.

What's driving this increase? Mostly Kiwis finally able to head home. Since March, New Zealand has opened to fully vaccinated travelers from countries whose citizens New Zealand has traditionally offered visa-free travel too. When the passenger numbers come through for the second quarter of the year, Air New Zealand should see further increases.

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Domestic flights normally provide the bulk of Air New Zealand's passengers, but international flights provide the bulk of the airline's revenues. Photo: Getty Images

Confidence returning to Air New Zealand

You can feel the confidence returning to Air New Zealand. Recently, the airline has gone on a hiring spree, ramped up flights to its largest market of Australia, announced direct services to New York, and confirmed the resumption of flights to almost all of its international network. While Air New Zealand's domestic operations traditionally generate the bulk of network-wide passenger numbers, its international network normally generates the bulk of the airline's revenue.

Getting the international network up and running is more than a matter of pride - it's necessary for the airline's bottom line. Air New Zealand has resumed its flights to Singapore, but passenger flights to other Asian destinations like Japan and Hong Kong remain held back by border closures there. However, between Air New Zealand and Star Alliance buddy Singapore Airlines, 14 flights a week are now on offer between the two countries - and that will bolster those thin numbers on Air New Zealand's Asian flights.