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

 


Air New Zealand announces third consecutive year of earnings

Air New Zealand announces third consecutive year of earnings growth

Air New Zealand has today announced normalised earnings[i] before taxation of $332 million for the 2014 financial year, an increase of 30 percent on the previous year. Statutory earnings before taxation were $357 million, an increase of 40 percent, while statutory net profit after taxation was $262 million.

Operating revenue, capacity and yields grew across the network, while unit costs remained stable.

The Board has declared a fully imputed final dividend of 5.5 cents per share, bringing total ordinary dividends declared for the year to 10 cents per share, an increase of 25 percent. Following a review of the company’s capital structure, a fully imputed special dividend of 10 cents per share has also been declared.

Chairman Tony Carter said that the result represented the third consecutive year of strong earnings growth for the airline.

“This is a result Air New Zealand can be proud of. Our employees, our customers and our shareholders can be confident that Air New Zealand continues to be a world leading airline both in terms of customer experience and financial performance,” Mr Carter said.

“We have made significant progress on our key strategic initiatives. With new aircraft offering better operating economics, an optimised network with the right alliance partners, disciplined cost management and a daily focus on improving the customer experience, we are very well positioned to continue growing.”

Mr Carter said that Air New Zealand will significantly grow its capacity in the coming year, as new aircraft arrive.

“Based on our current expectations of market demand and fuel prices, we expect to improve on the 2014 result in the coming year. This outlook excludes equity earnings from the Virgin Australia shareholding,” he said.

Chief Executive Officer Christopher Luxon said the result was testament to the efforts of Air New Zealanders at all levels of the organisation.

“Our team is demonstrating their passion and commitment to ensuring that Air New Zealand is performing better than ever before. A successful Air New Zealand is good for everyone – it is a virtuous circle. As we grow our revenue and control costs, we generate strong financial results which lead to sustainable returns to shareholders and investment back in the business,” Mr Luxon said.

“We have a number of initiatives underway to further improve the customer experience, including induction of the Boeing 787-9 fleet, the refurbishment of our Boeing 777-200ER fleet, moving to new terminals and lounges in Los Angeles and London and multiple lounge upgrades across the network.”

Mr Luxon also commented on the airline’s alliance with Singapore Airlines, which was recently granted full regulatory approval.

“This alliance is the third strategic revenue sharing alliance we have formed in recent years, following agreements with Virgin Australia (reauthorised in 2013) and Cathay Pacific in 2012. Forming alliances with the right partners in the right markets is a key pillar of our Go Beyond strategy.”

“Strong alliances such as this provide us with a platform for sustainable growth, allowing us to open up new routes and markets across the Pacific Rim,” he said.

ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Housing: Affordability Drops 14%, Driven By Auckland Prices

Housing affordability across New Zealand fell 14 percent in the year ending November 2014, with Auckland’s lack of affordability set to reach levels it hit during the height of the global financial crisis, according to the latest Massey University Home Affordability Report More>>

ALSO:

The Dry: Fonterra Drops Forecast Milk Volumes By 3.3 Percent

Fonterra Cooperative Group, the worlds largest dairy exporter, reduced its milk volume forecast for the 2014-2015 season by 3.3 per cent due to the impact of dry weather on production in recent weeks. More>>

ALSO:

Strike: Lyttelton Port Workers Vote To Escalate Dispute

Members of the Rail and Maritime Transport Union (RMTU) at Lyttelton Port today voted to escalate their industrial action. Around 200 RMTU members have been operating an overtime ban since 17 December and today they endorsed a series of full withdrawals of labour at the port. More>>

ALSO:

Scoop Business: NZ Dollar Falls To 3-Year Low As Investors Favour Greenback

The New Zealand dollar fell to its lowest in more than three years as investors sold euro and bought US dollars, weakening other currencies against the greenback. More>>

ALSO:

Scoop Business: NZ Govt Operating Deficit Smaller Than Expected

The New Zealand’s government’s operating deficit was smaller than expected in the first five months of the financial year as a clampdown on expenditure managed to offset a shortfall in the tax-take from last month’s forecast. More>>

ALSO:

0.8 Percent Annually:
NZ Inflation Falls Below RBNZ's Target

New Zealand's annual pace of inflation slowed to below the Reserve Bank's target band in the final three months of the year, giving governor Graeme Wheeler more room to keep the benchmark interest rate lower for longer.More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news