Air NZ kicking goals, drops fares, tops profits
Air New Zealand has hit the ground running in 2015.
The airline group announced a record NZ$327 million net profit after tax in the last financial year. Jumping up by 24%, the net profit after taxation is a product of capacity growth and strong demand, cost efficiencies and lower fuel prices.
The airline’s normalised earnings before taxation also skyrocketed by 49%, sitting at NZ$496 million for the 2015 financial year. Air NZ’s operating cash flow proved another strong asset, hitting $1.1 billion, up 51% on the previous year.
The airline’s chief executive officer Christopher Luxon said a continued focus on superior commercial results, enhancing customer experience and developing the airline’s people and culture have resulted in a terrific 2015 financial year.
“We remain focused on the Pacific Rim as our growth strategy and will continue to provide the best connections, product and service at competitive prices, to maintain and grow our market share in these regions,” Luxon said.
“Next year will see further capacity growth in international markets as we look forward to new routes starting in December 2015 to Houston and Buenos Aires. And while we are gearing up to launch these exciting new routes we have a team assessing potential new opportunities in Australia, Asia and the Americas.”
The results of the airline’s finances do, however, include equity accounted losses of $29 million from Virgin Australia, but Air NZ is still intent on pushing into the Aussie market.
“The reality for us is with Virgin we compartmentalise our relationship with them,” Luxon said, referring to Virgin’s alliance with Air NZ on trans-Tasman routes but Delta Air Lines on trans-Pacific routes.
“We look at it and we think there are bits of Australia underserved in connecting to North America and South America. The national carrier [Qantas] has become more focused around Sydney.”
Luxon also added that domestic operations will grow 8% in the year ahead, to combat the competition from Jetstar in its home territory.
“We operate one of the most comprehensive domestic jet and regional turboprop networks in the world renowned for frequency, service and reliability,” he added.
“Our domestic operation will grow 8% in the year ahead, while at the same time maintaining our price leadership with more than two million domestic fares expected to be offered for sale for less than $100.”
Air New Zealand’s loyalty programme, Airpoints, continues to grow at pace with around 1.9 million members now, which is up almost 17% on the previous year. Australia remained the biggest overseas membership base with growth in that market exceeding 20% during the year.
“This doesn’t surprise us as more Australians than ever are embracing the Air New Zealand product and service offering whether it be on the Tasman, to the Pacific Islands, North America or South America.”
The Board has declared a fully imputed final ordinary dividend of 9.5 cents per share, an increase of 73% on the prior year, resulting in a 2015 full year ordinary dividend of 16.0 cents per share, an increase of 60% on the prior year.
“Our strategic initiatives over the past three years have positioned us well to take advantage of market dynamics which have contributed to these results,” Chairman Tony Carter said.
“Our investment in new efficient aircraft, the continued development of our alliance partner relationships, world class sales and marketing execution, great customer service and strong focus on cost management have enabled Air New Zealand to achieve revenue growth against a stable cost base.
The stellar profit comes just Air New Zealand and Cathay Pacific announced the continuation of their strategic agreement on the Auckland to Hong Kong route until 2019.
The strategic agreement has been operating since January 2013 and has already delivered a range of benefits to customers travelling between New Zealand and Hong Kong including the choice of up to three frequencies per day, reciprocal frequent flyer benefits and enhanced connectivity to and from both carriers’ networks.
Luxon added that the cooperation with Cathay plays an important part in the airline’s Pacific Rim strategy.
“This agreement has not only let Air New Zealand broaden its offering to customers between New Zealand and Hong Kong but has also allowed us to offer our customers excellent access to destinations throughout China and North Asia on Cathay Pacific and its sister airline Dragonair,” Luxon added.
“In turn our agreement has also allowed us to stimulate inbound tourism to New Zealand from these markets.”
Email the Travel Weekly team at traveldesk@travelweekly.com.au
-
Latest comments
Latest News
Australia fails to make top 10 destination list for American travellers
Australia's top cities have failed to make the grade with American travellers this northern summer, with no local city in the top.
APT Launches 2025 Asia Adventures
APT has launched its Asia Adventures for 2025, including new luxury holidays in India, Sri Lanka and Japan. Five new tours lead guests to the highlights of India, including a seven-night cruise along the rarely travelled Lower Ganges aboard the Ganges Voyager. Further south, Sri Lanka’s greatest destinations are revealed on a new 15-day Land […]
ANZAC Battlefield travel on the 2025 bucketlist
As Anzac Day dawns, agents prepare for a surge in bookings for the 110th anniversary of the Anzac Cove landings.
Former Channel 9 Getaway host and founder of TRIBE Jules Lund to speak at Travel DAZE
From blond-tipped travel reporter to Travel DAZE speaker, Jules Lund cuts through the BS.
HX’s Roald Amundsen finds aliens in the Antarctic
Forget whales, HX's MS Roald Amundsen captures aliens in the Antarctic - and they're not pretty.
Mayhem in France as 70% of flights face cancellation
I mean it wouldn't be France if there wasn't at least one strike.
Etihad Airways launches double-decker service with world’s only in-air three-room suite
We imagine falling asleep in the three-room suite is superior to falling asleep on your neighbour's shoulder.
Norwegian Cruise Line launches 2024 Europe travel season
Europe certainly has a lot of ports. Its time for Australia to up its game.
“The power of travel for positive change” – Intrepid’s Jenny Gray hails controversial all-women Saudi Arabia trip
There is an awful lot to love about this tour from Intrepid. Where do we sign up?
Princess names the Sun, unveils Sanctuary Collection + Star Princess to Alaska in ’26
A huge bottle of Veuve was smashed into the side of the ship to make things official. So no, we couldn't snag a glass.
Collette special offers across peak northern summer season
If you are craving a trip to Europe then grab this deal with both of your grubby hands.
Air India and All Nippon codeshare between the two countries
Here at TW we agreed that the photo would have worked better if they had swapped planes.
A&K offers minimum 18 weeks paid parental leave
Contrary to what the photo suggests this benefit is only applicable for humans. Back to work Mrs Jumbo.
NH Hotel Group rebrands as Minor Hotels Europe & Americas
Hang around the bends of the hotels. We imagine they will be full of a lot of branded content.
Scenic Eclipse II – the business of creating unforgettable life-changing memories
These cruise brothers from another mother offer a view of cruising on Scenic Eclipse II that is poles apart.
MSC builds new hospital ship with Mercy Ships
If you want to read a story that puts a smile on your face then this is the one for you.
“I peed on myself watching this” – Social media users squirm at Royal Caribbean’s Harmony of The Seas 55ft dive video
TW is not responsible for any involuntary actions your body might have after watching this video.
FLIGHT REVIEW: Qantas Boeing 787 Dreamliner business class
The real bonus is you're unlikely to be around screaming children. Hoorah!
Traveltek offers travel agents new rapid deploy cruise website
As always, if you have any issue with the platform, just turn it off and on again.
Experience whale watching & classical music at the Australian Festival of Chamber Music in Townsville
Disappointedly, the whales do not start singing in tune with the orchestra. Opportunity missed.
Fond, very Fond. London hotel famed for James Bond link adds ‘Classic Comforts’ lunch menu
James Bond author Ian Fleming was so fond if this hotel, it inspired the legendary phrase ‘shaken, not stirred’.
What sets Eclipse Travel apart with Africa expert Hilary Dubyk: Travel Weekly TV
If you want to know more about Africa, then Hilary Dubyk is your person.
Surge in Australians visiting Japan
Feel like all of your friends have just returned from Europe? Now it's Japan.
Seabourn announces Western Kimberley Traditional Owners as Godparents of Seabourn Pursuit
Seabourn has named Western Kimberley Traditional Owners, the Wunambal Gaambera, as Godparents of the ultra-luxury purpose-built Seabourn Pursuit. It is the first cruise line to appoint Traditional Owners as godparents of a ship. Seabourn Pursuit embarks on its inaugural season in the Kimberley region this June. The naming ceremony will take place on Seabourn Pursuit’s […]
Sydney named 17th best place to work remotely
If you struggle to get a seat within Sydney's coffee shops, you now know why.
W Melbourne grows sales team
We appreciate the thought that has gone into this team photo.
Cunard welcomes new ship Queen Anne
This might be the most impressive ship handover in ship handover history.
Intrepid Travel appoints Yvette Thompson as general manager sales & marketing ANZ
It isn't end-of-day Monday and Yvette Thompson has already nabbed herself an impressive promotion.
Anna Fawcett re-joins Global Touring in newly-created APAC role
With such an impressive CV, Global Touring is no doubt thrilled to have Fawcett back.
“We know our response has been far from perfect” – Emirates’ open letter following Dubai flooding
If you also need to write an apology letter, then this is a pretty good template.
Malolo Island Resort opens brand new Spa
Fiji’s Malolo Island has added another string to its bow – opening its $1.3 million day spa on Thursday, 18th April 2024. (Lead Image: matriarch Rosie Whitton with spa staff) Located at the edge of the resort’s luscious patch of tropical rainforest, the new “Leilani’s Spa” adds another level of elevated experiences to Malolo’s already […]
Virgin Australia’s HILARIOUS second instalment of the ‘Bring on Wonderful’ campaign
We don't use the word 'hilarious' lightly, but this is worthy of the title.
Visit Sunshine Coast reveals new brand identity
If you were looking for another reason to visit the Sunshine Coast then this is it.
Sofitel launches brand campaign starring Sex Education’s Gillian Anderson
We can confirm the content of this video is less spicy than Sex Education.
Holland America Line gives agents the chance to visit Alaska on 11-day Famil
If you've ever wanted to see a Polar Bear (and who doesn't?), now is your time.
More than 65 luxury agents gather in Sydney for Best of the Best dinner
This looks like a fabulous do. We imagine there may be a few (or maybe 65) sore heads this morning!
seem to remember the unbeatable Old Blecks lost a game in Sydney a few weeks back.
What short memories we have.