Aviation

Qantas shares dive as Air New Zealand slashes earnings outlook

Shares in Qantas fell nearly nine per cent yesterday following the announcement by Air New Zealand that it was forecasting weaker than expected earnings for the 2019 financial year.

In an ASX update issued yesterday, Air New Zealand said it now expects earnings before tax to be between $340 million and $400 million for the 12 months to 30 June, which includes the impact of the global Rolls-Royce engine issues.

Air NZ’s previously announced guidance for underlying earnings before tax was between $425 million and $525 million, which excluded an estimated impact of $30 million to $40 million from schedule changes prompted by the Rolls-Royce engine issues.

The airline said the revised earnings guidance – which is down roughly 20 per cent – reflects updated revenue forecasts based on recent forward booking trends.

Air NZ expects revenue growth to remain positive, but at a slower rate than previously anticipated. The markets showing sings of lower growth for the airline include leisure travel within domestic NZ and softening inbound tourism traffic.

The company’s capacity growth has been reduced to approximately four per cent for the full year, compared to its original capacity guidance of four to six per cent.

Air NZ chief executive Christopher Luxon said the airline was “concerned with our latest outlook, which reflects the softer revenue growth that we are seeing in the second half of the year.

“Therefore, we have commenced a review of our network, fleet and cost base to ensure the business is on a strong footing going forward,” he said.

Air NZ’s share price tumbled more than 13 per cent to $2.70 yesterday following the earnings update.

The negative outlook was also felt by Qantas (which has a codeshare deal with Air New Zealand), with shares in the Aussie airline falling nearly nine per cent to $5.59 on Wednesday.

SEE WHAT PEOPLE ARE SAYING

  • John McDonald

    & this is surprising ? NOT

    Many airlines in Europe are closing down. Which airlines will fold in this part of the world ? I bet Qantas wishes it didn’t have any expensive A380s. Expensive to operate & hard to fill, with Qantas’s very high costs.

Road & Rail

Tourism

Kiwi rail journey provider closes outdoor carriages due to dangerous selfies

Passengers’ risky behaviour in search of the ultimate selfie has forced the closure of some iconic train viewing platforms.

Share

CommentComments

Destinations

Travel Agents

Afterpay expands into travel with lay-by holiday offering

by Christian Fleetwood

Travel Weekly’s editor is planning to lay-by a holiday as soon as he finishes paying off a Hot Wheels Corkscrew Crash Track Set from Kmart.

Share

CommentComments

Road & Rail

At least 29 people killed in Madeira tourist bus crash

by Ali Coulton

The driver reportedly lost control of the bus before it plunged off the road and rolled down a hill.

Share

CommentComments

Aviation

India’s Jet Airways collapses due to funding shortage

by Huntley Mitchell

It’s turning out to be a day of collapses this fine Thursday, with the office chair of Travel Weekly’s editor having just given way to his posterior.

Share

CommentComments

Aviation

Etihad to operate entirely plastic-free flight for Earth Day

This Earth Day, Travel Weekly is committing to slapping single-use coffee cups out of the hands of at least three commuters on our way to work. They’ll thank us when they recover from the burns.

Share

CommentComments

Technology

Expedia to no longer be a controlled company following new acquisition

Online travel behemoth Expedia has broken the shackles and surfaced from its parent’s basement looking rather healthy, rather than malnourished and disheveled.

Share

CommentComments

Tourism

One in five Aussies admit to missing their pets more than their kids when they go away

Pet owners across Australia are no doubt preparing to say tearful goodbyes to their furry life partners before going away this Easter, while simultaneously flipping off their kids.

Share

CommentComments

Travel Agents

Agent wrap: Qantas Holidays rewards premium agents, Bench Africa famil + more!

Does seeing all the famil pictures in our agent wraps make you green with envy? Take comfort in the fact that you don’t have to come into work for the next four days. We know we are.

Share

CommentComments

Hotels

Hotel wrap: Preferred hotels & resorts new members, Australia gets a second voco + more!

We took a 10-minute break from scoffing Easter eggs to bring you up to date with all the latest hotel openings and deals. You’re welcome.

Share

CommentComments

Events

Tourism

Travel Agents

Wholesalers

Why you need to attend the Amazing Tastes of Thailand roadshow

The Amazing Tastes of Thailand roadshow is just around the corner! Here’s why YOU need to be there.

Share

CommentComments

Cruise

Carnival cruise ship rescues dozens of people adrift at sea

A Carnival cruise ship has gone all Baywatch and saved the day by helping rescue a vessel carrying more than 20 passengers adrift in the Gulf of Mexico.

Share

CommentComments

Aviation

WTF? Air stewards are selling unwashed uniforms on eBay

Inspired by this story, Travel Weekly’s editor is attempting to sell a pair of his unwashed Calvin Klein briefs on Gumtree, all for a low, low price of $1.25 plus shipping.

Share

CommentComments