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

 

Air New Zealand profit more than doubles

Media release

29 August 2013

Air New Zealand profit more than doubles

Air New Zealand today announced earnings before taxation of $256 million for the 2013 financial year, an increase of 172 percent on the previous year and the company’s best result in five years.

The net profit after taxation was $182 million, which is $111 million or 156 percent up on the previous year.

Operating cash flow was the highest ever at $750 million, and the company reported cash holdings of $1.15 billion. Gearing improved seven percentage points to 39.1 percent, a record low for the airline.

A fully imputed final dividend of 5.0 cents per share has been declared, taking the total dividend for the year to 8.0 cents per share, a 45 percent increase on the previous year.

Chairman John Palmer says the result places Air New Zealand amongst the best performing airlines globally. “We are focused on further improving on this result in the 2014 financial year. Based on the airline’s forecast of market demand and fuel prices at current levels, early results and forward bookings are encouraging.” he says.

“This result is one that investors, Air New Zealanders, customers and our nation can be proud of. It marks the start of an exciting new phase as Chief Executive Officer Christopher Luxon and his management team drive their Go Beyond strategy to grow the airline,” Mr Palmer says.

“Strong results allow Air New Zealand to reinvest in its products, services, training and development to further enhance the customer experience and to connect more people and businesses than ever to, from and within New Zealand.”

Air New Zealand has committed to investing NZ$1.8 billion in aircraft over the next three years.

The aircraft due to enter the Air New Zealand fleet over the next three years are:

2 Boeing 777-300ERs
6 Boeing 787-9s
9 Airbus A320s
4 ATR72-600s

“There can be no greater vote of confidence in the growth potential of the airline, and of the attractiveness of New Zealand as an international destination, than expanding and upgrading our fleet. Alongside this we continue to actively pursue new alliance partnerships and destinations to grow our traffic.”

Chief Executive Officer Christopher Luxon says the desire of Air New Zealanders to deliver further sustainable commercial success and take the customer experience to the next level is something that would be the envy of many companies.

“We have 11,000 people working together with the goal of growing Air New Zealand and further enhancing our award-winning customer experience. We have a range of initiatives that will roll out during the 2014 financial year as we reinvest in the business to keep us ahead of the competition.

“We are more customer centric than we’ve ever been and the growth in membership of our Airpoints™ programme during the last year shows that our products and services are resonating with customers. Airpoints™ membership is now 1.4 million, up 17 percent on the previous year,” Mr Luxon says.

“The relentless focus we have on growing Air New Zealand is not just confined to the passenger side of the airline. Our Cargo team delivered an outstanding result for the year against a tough industry backdrop.”

Mr Luxon says Air New Zealand delivering its best result in five years would not have been possible without the outstanding leadership John Palmer has shown as Chairman since he was appointed in late 2001.

“Air New Zealand would not be the airline it is today without John Palmer’s leadership of the Board for more than a decade. He took on the hardest governance job in the country following the recapitalisation of Air New Zealand and has recruited and supported three Chief Executive Officers and their management teams to rebuild the airline to again make it a profitable, customer centric, globally award-winning airline that New Zealand can be proud of.”

Mr Palmer will retire as Air New Zealand Chairman at the Annual Shareholders’ Meeting in Auckland on September 27 this year. He will be replaced by Deputy Chairman Tony Carter.

Key points:

· Earnings before taxation of $256 million, an increase of 172 percent

· Net profit after taxation of $182 million, an increase of 156 percent

· Operating revenue $4.6 billion, up three percent

· Operating cash flow of $750 million, a record for the Group

· Gearing improved seven percentage points to 39.1 percent, a record low

· Fully imputed final dividend of 5.0 cents per share, taking total dividend to 8.0 cents per share

Ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Reserve Bank: Policy Lessons From A Year Of Covid-19

The Reserve Bank of New Zealand – Te Pūtea Matua was in a sound position to continue to meet its mandate in the face of the COVID-19 induced economic shock. However, we must continue to transform so as to remain relevant and effective in addressing longer-term challenges, Reserve Bank Governor Adrian Orr said... More>>


Transport Industry Association: Feb 2021 New Vehicle Registrations Strongest On Record

Motor Industry Association Chief Executive David Crawford says that the February 2021 figures are the strongest for the month of February ever. Registrations of 12,358 were 8.0% up on February 2020. Year to date the market is up 7.1% (1,735 units) compared to the first two months of 2020... More>>

Paymark: Lockdown Equals Slowdown For Some

The three days of lockdown for Auckland earlier this month made a clear impression on our retail spending figures. While only Auckland moved into Level 3 lockdown, the impact was felt across the country, albeit at different levels. Looking at the ... More>>

Infrastructure Commission: Te Waihanga Releases Report On Water Infrastructure

The New Zealand Infrastructure Commission, Te Waihanga’s latest discussion document highlights the importance of current reforms in the water sector. Its State of Play discussion document about water infrastructure is one of a series looking at the ... More>>


OECD: Annual Inflation Picks Up To 1.5% In January 2021 While Euro Area Records Sharp Increase To 0.9%

Annual inflation in the OECD area picked up to 1.5% in January 2021, compared with 1.2% in December 2020. Following a rebound between December and January, the annual decline in energy prices was less pronounced in January (minus 3.9%) than in December... More>>


Hemp Industries Association: Could The Next Team NZ Boat Be Made Entirely Of Hemp?

With The America’s Cup due to start in a few days’ time, innovators from a very different sphere have been wondering how long it could be before New Zealand could be competing in a boat entirely built from hemp, with the crew eating high-energy, nutritious hemp-infused foods and wearing high-performance hemp kit..? More>>


ACT: Matariki Almost A Half Billion Dollar Tax On Business

“Official advice to the Government says an extra public holiday at Matariki could cost almost $450 million,” ACT Leader David Seymour can reveal. “This is a perfect example of the Prime Minister doing what’s popular versus what’s responsible. ... More>>

Genesis: Assessing 6,000 GWh Of Renewable Generation Options For Development By 2025

Genesis is assessing 6,000 GWh of renewable generation options for development after starting a closed RFP process with 11 partners. Those invited to participate offer a range of technologies as Genesis continues to execute its Future-gen strategy to ... More>>