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

 

OceanaGold: Man Killed In Waihi Mine Accident

A 29-year-old man had died following a work place accident at OceanaGold mine, Waihi last night. The man was killed after the front end loader he was in rolled down a slope. The accident happened at approximately 6.30pm on Thursday night. More>>

ALSO:

Constructing Consent: Annual Housing Consents Highest In Over A Decade

More than 29,000 new homes gained building consent in the year to June 2016, up 16 percent from the previous June year, Statistics New Zealand said today. More>>

ALSO:

War Against Weevil For Future Peas: “No Peas, No Weevil” Ban Now In Place In Wairarapa

The Ministry for Primary Industries (MPI) has today placed a ban on growing peas within a specified area and placed controls on moving pea material (seed and untreated pea straw) within, in and out of this area for the next 2 years. More>>

ALSO:

Wood Producers: Crisis In New Zealand Log Supply

New Zealand wood processing leaders held a hui with senior government officials and political leaders in Whangarei yesterday to assess the acute log supply shortage to local mills in Northland. More>>

Consents And Taxes: Trustpower 'Very Disappointed' With Judgement

Trustpower is "very disappointed" with a Supreme Court ruling dismissing its bid to claim tax deductions on $17.7 million of project costs in a case closely watched by large-scale infrastructure developers. More>>

ALSO:

Fruitful Endeavours: Kiwifruit Exports Reach Record Levels

In June 2016, kiwifruit exports rose $105 million (47 percent) from June 2015 to reach $331 million, Statistics New Zealand said today. Overall, goods exports rose $109 million (2.6 percent) in June 2016 (to $4.3 billion). More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news