Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Air NZ 1H profit soars on growth in international volumes

Air NZ 1H profit soars on growth in international volumes, yields

Feb. 28 (BusinessDesk) – Air New Zealand, which is 73 percent state-owned, posted first-half profit that more than doubled after lifting passenger volumes and boosting yields on international routes, while keeping costs in check.

Profit rose to $100 million in the six months ended Dec. 31 from $38 million a year earlier, the Auckland-based airline said in a statement. Operating revenue rose 3.4 percent to $2.37 billion. The results about matched analyst expectations.

Shares of the airline, which is among state-owned assets slated for a partial selldown, have advanced 54 percent in the past 12 months and are rated ‘outperform’ based on a Reuters poll, which suggests the stock has further to run to reach a median target of $1.50. The company will pay a first-half dividend of 3 cents a share, a third higher than the year-earlier payment.

Chairman John Palmer said normalised pretax earnings for the second half of the year will “comfortably exceed” the same period of 2012, based on current estimates of market demand and fuel prices.

“The operating environment is as competitive as ever and our management team need to be agile and decisive to stay ahead of the game,” Palmer said. “Air New Zealand continues to be held in high regard by the travelling public and our employees alike. This is not to be taken for granted.”

Normalised earnings before tax surged 300 percent to $139 million in the first half, reflecting a $57 million gain from passenger traffic, a $15 million increase from improved passenger yield, and an additional $11 million from cargo and contract services. Operating expenses fell 1.2 percent, led by reduced labour costs and lower expenses related to maintenance and overhaul.

The airline’s operating metrics all showed improvement. Capacity, measured by available seat kilometres, rose 2.7 percent while the load factor rose0.4 percentage points to 83.2 percent and yield climbed to 13.6 cents per revenue passenger kilometre, or RPK. Unit costs fell 4.7 percent.

Long haul yields rose 3.8 percent while passenger demand overall climbed 3.2 percent, driven by a 3 percent gain in international and a 4.4 percent increase for Tasman-Pacific routes.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Statistics: Business Research And Development Up 29 Percent

Computer services and machinery manufacturing firms led the way in an almost 30 percent lift in business spending on research and development (R&D) in 2016, Stats NZ said today. Businesses spent $1.6 billion on R&D in 2016, up $356 million (29 percent) from 2014. More>>

ALSO:

China Shopping: NZ-China FTA Upgrade Agreed Among Slew Of New Deals

New Zealand Prime Minister Bill English and China Premier Li Keqiang signed off a series of cooperation deals spanning trade, customs, travel and climate change and confirmed commencement of official talks on an upgrade to the nine-year old free-trade agreement between the two countries. More>>

ALSO:

Media: TVNZ Flags Job Cuts To Arrest Profit Decline

Chief executive Kevin Kenrick said the changes were aimed at creating "a sustainable future video content business for TVNZ in an ever-changing media market." More>>

ALSO:

Reserve Bank: Wheeler Keeps OCR At 1.75%

Reserve Bank governor Graeme Wheeler kept the official cash rate unchanged at 1.75 percent, as expected, and reiterated his view that the benchmark rate doesn't need shifting for the foreseeable future. More>>

ALSO:

Trade Plans: Prime Minister's Speech To International Business Forum

"The work to improve public services, build infrastructure, and solve social problems is possible only because we have enjoyed sustained, solid economic growth. A big reason for that is the Government’s consistent agenda of economic reform, and our determination to open up more opportunities for trade with the world." More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news