Profit down, outlook strong for Air NZ

Profit down, outlook strong for Air NZ
By admin

Air New Zealand has reported a 12% decline in net profit after tax but expects earnings to more than double in the current financial year.

The carrier saw profit fall to NZ$71 million although earniings before tax climbed 21% to NZ$91m.

Chairman John Palmer said Air NZ was "well positioned" for growth with Australia a target area.

"We have come through some tough times and the worst impacts of natural disasters like the Christchurch earthquake and tsunami in Japan are behind us which means growth opportunities are no longer suppressed," he said.

"We view the future with optimism and are pursuing a clear strategy to strengthen our Australasian operations while being ahead of target in restucturing our international long haul network to improve financial performance."

Assumiung market demand remains as forecast, earnings before tax should increase by more than 100% in the 2013 financial year, Palmer said.

Air NZ chief executive Roy Fyfe said its Australian operation will continue to be strengthened through its alliance with Virgin Australia.

"The trans-Tasman alliance has been a success, exceeding our projections and delivering our customers, and those of Virgin Australia, access to the largest airline network in Australasia with connections into 62 towns and cities," Fyfe said.

Furthermore, its 19.99% stake in its partner gave Air NZ "economic exposure" to the domestic market in Australia.

Fyfe said its international network has seen a "significant" financial improvement and is expected to "contribute positively" to 2013 profit.

Revenue in the year to June 30 climbed 3% to NZ$4.483 billion.


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