Air New Zealand reiterates target for 2013 pretax earnings to more than double
Nov. 28 (BusinessDesk) - Air New Zealand, the airline slated for a selldown by its government owner, has reiterated its target for full-year earnings to more than double, driven by a rebound in the first six months of the year. The shares rose after the announcement.
The Auckland-based company first gave the forecast with the release in late August of its full-year results, saying it was based on the assumption of market demand and fuel prices at elevated levels. Normalised earnings before tax were $91 million in 2012, so the prediction implies a 2013 result of at least $182 million.
The airline’s guidance for the first half, ending Dec. 31, was for normalised earnings in a range of $120 million to $140 million, a recovery from the same period last year, when high fuel costs and a fall in international passenger numbers cut pretax earnings to just $33 million.
The shares climbed 1.6 percent to $1.265 on the NZX today and have climbed 38 percent this year. The stock is rated ‘outperform’ based on the consensus of seven recommendations compiled by Reuters, with a price target of $1.41.
The first-half forecast implies a weaker second half, which the airline says follows its traditional seasonal pattern.
Air New Zealand, which is 73 percent-owned by the Crown, is among five of the state-owned assets that the National-led government has earmarked for a sell down over the next five years.