Airways reports record operating profit
30 August, 2016
Airways reports record operating profit, strong operational performance
Airways New Zealand has reported a strong safety, operational and financial performance in the year ending 30 June, 2016.
CEO Ed Sims says, “Airways has maintained its strong safety record in the air traffic control industry, while reducing customer prices and delivering a record operating profit.”
The state-owned enterprise (SOE) achieved a Group Net Operating Profit after Tax (NOPAT) of $23.2 million, well ahead of a budgeted $16.5 million and 54 per cent up on the prior year. Airways’ positive financial result was supported by an eight per cent increase in flight volumes from the prior year, in addition to strong cost management.
In May, Airways announced a 4.7 per cent price decrease for airlines over the next three year pricing period with general aviation prices maintained in line with inflation.
The SOE will also pay a $9m dividend to its shareholder, the New Zealand Government, an increase from $4m in the previous year.
Airways’ commercial businesses made strong gains, increasing NOPAT to $3.5m from $2.2m in FY15.
Over the year Airways increased its capital expenditure by 10 per cent, strengthening network efficiency and resilience and including significant new infrastructure at Queenstown Airport. This supports the region’s continued growth and provides greater convenience to the travelling public with evening flights now operating in the tourist town.
Airways Chair Susan Paterson says, “Airways New Zealand is a high performing SOE by all measures. It has delivered a price reduction to its airline customers, more than doubled its dividend to the Crown and achieved outstanding operational performance during a year of high air traffic growth and continued investment in New Zealand’s essential aviation infrastructure.”