Record results for Air NZ
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Air New Zealand achieved a sharp rise in profits in the first half of its financial year.
The airline generated record pre-tax earnings of NZ$180 million (US$150m), a year-on-year increase of 29%, on revenues of NZ$2.3 billion. The airline now expects to achieve full-year profits of NZ$300m.
“As we continue through a period of strong earnings growth, we are demonstrating that we can deliver increasing returns to shareholders. Our improved commercial results are also enabling us to invest in the customer experience, explore new markets and invest in our people and culture,” said Air NZ’s CEO, Christopher Luxon.
“The journey ahead is shaping up as incredibly exciting, particularly given the positive economic outlook in many of our key revenue markets. We are well placed to take advantage of this, with significant fleet additions soon to arrive.”
These new fleet arrivals, which include the world’s first Boeing 787-9 Dreamliners, will increase Air NZ’s capacity by 8% in the 2015 financial year. And Luxon said the economies of scale achieved through this expansion will benefit Air NZ in the coming years.
“With new fleet additions and capacity growth, our scale grows. Our new aircraft will be significantly more efficient than those they replace and having fewer aircraft types drives unnecessary complexity out of our operations,” he commented.
The airline also said it was benefiting from its partnerships with the Star Alliance, Virgin Australia and Cathay Pacific, and that it expects to see future gains following its tie-up with Singapore Airlines.
“Forming the right alliances with the right partners allows us to deliver on our strategy of profitable growth as a Pacific Rim airline,” Luxon said.
Air NZ’s record result marks a sharp contrast to Qantas, which today posted a pre-tax loss of AU$252m (US$227m) for the first half of its financial year.
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