Aviation

Air New Zealand’s profit plummets, interim CEO appointed

Huntley Mitchell

Huntley Mitchell

Air New Zealand has posted a big drop in profit for the 2019 financial year, as well as providing an update on its hunt for a new boss.

The airline posted a net profit after tax of $254.9 million for the 12 months to 30 June 2019 – down a whopping 31 per cent on FY18.

Air New Zealand said the result was driven by operating revenue growth of 5.3 per cent to $5.5 billion, which was offset by a $180.3 million increase in the price of fuel, as well as a temporary increase in operating costs as the airline sought to improve network resiliency for its customers in the face of the global Rolls-Royce engine issues.

Earnings before taxation fell 31 per cent to $353.1 million for Air New Zealand in FY18.

Chairman Tony Carter said: “While we are disappointed that we did not meet the expectations we first set for ourselves at the start of the financial year, the fact is we are operating in a different demand environment than we were 12 months ago.

“To have achieved a solid result despite these headwinds speaks volumes about the extraordinary dedication and commitment of our people.

“When we first saw signs that demand was slowing, we took immediate steps to review our network, fleet and cost base, to position the airline for success in a lower growth environment. While we have made progress, this work is still ongoing.

“I am very confident in our strategy and our experienced, world-class executive team who are focused on driving our business back to earnings growth, while ensuring that we maintain the airline’s strong customer-centric culture.”

In light of CEO Christopher Luxon’s impending departure next month, Air New Zealand has announced that chief financial officer Jeff McDowall will take up the position of acting CEO from September 26 until a successful candidate, selected through a global search process, starts. Mr McDowall is not seeking permanent appointment to the role.

Stephan Deschamps will take up the position as acting chief financial officer of the airline.

Carter said the Air New Zealand board was highly satisfied with how the global search for a new CEO was progressing.

The chairman will step down from the role on 25 September and be replaced by director Dame Therese Walsh, who is leading the search process for a new CEO on behalf of the Air New Zealand board.

Walsh said the strength of the airline’s brand and its people has attracted strong interest from candidates within New Zealand and overseas.

She said that given the calibre of the candidates being considered in the selection process, it is possible that the new CEO of Air New Zealand will not start until the first quarter of 2020.

“We are fortunate to have a talented executive team who are united in their support of Jeff to lead them and the business as acting chief executive officer during this interim period,” she said.

“Jeff has held senior management roles across the airline for more than a decade and is well-known to investors, stakeholders and key partners, such as the travel trade and unions.”


SEE WHAT PEOPLE ARE SAYING

Leave a Reply

News

“Unfortunately, the world changed”: McGowan suspends WA border reopening indefinitely

The western state will be keeping its borders firmly closed, as Premier Mark McGowan buys more time to bolster citizens against a “flood of the disease”.

Share

CommentComments

Tourism

Thailand to resume ‘Test & Go’ quarantine waiver from February

Pack your suitcase and ready your sinuses for a holiday in Thailand that promises to greet you with a lovely PCR test.

Share

CommentComments

Hotels

AUSSIE FIRST: Accor unveils next gen Mercure Hotels with new Melbourne property

While away your Friday afternoon by perusing through some stunning pictures of Accor’s swanky new-look Mercure in Doncaster.

Share

CommentComments

Aviation

Qantas threatens to slash cabin crew wages by “almost half” in latest union pay row

by Ali Coulton

The national carrier is once again facing condemnation from unions after applying to scrap its long-haul crew contract in an effort to “push through” a new deal.

Share

CommentComments

Aviation

Operation nest egg: Air New Zealand helps relocate rare kiwi chicks

The airline is doing gods work by flying these three little cuties to their new home where they were treated to an all-you-can-eat worm buffet.

Share

CommentComments

Tourism

Say ‘Aloha’ to the Hawaiian Islands and take a trip that gives back

by James Harrison

Check out the beauty, wonder, and excitement of the islands of Hawaii and explore a holiday destination where you can malama.

Share

CommentComments

Cruise

Crystal Cruises suspends operations as parent company files to windup business

The Hong Kong supercruise operator is winding up operations, leaving the future of its subsidiaries unknown.

Share

CommentComments

Tourism

Celebrity chef duo Gary Mehigan and Manu Feildel star in new tourism campaign for Japan

The staff at Travel Weekly have been rewatching our favourite anime to reminisce about Japan, but Gary and Manu might appeal to a broader audience than Pokemon reruns.

Share

CommentComments

Tourism

Aussie tourism took off in December, but remians well below 2019 levels

If these stats are anything to go by, we’ll be back to worrying about overtourism and carbon footprints in no time! Wait…

Share

CommentComments

Destinations

US slaps “do not travel” warning on Australia as Europe tightens border restrictions

The prospect of fewer American tourists milling about at Darling Harbour we can deal with, but if we have to go one more year without a European summer we’re going to go over the deep end.

Share

CommentComments

Aviation

Union survey reveals transport workers asked to return while COVID positive

Workers who answered the survey, which included passenger transport and aviation workers, are also calling for free RATs. That’s rapid antigen tests, not rodents as we first assumed.

Share

CommentComments

Wholesalers

“This isn’t a label we wish to keep”: Intrepid recertified as world’s largest travel B Corp

The tour operator has gone through another extensive company-wide audit to maintain its title, so why is it looking to pass the baton you may ask? Click here.

Share

CommentComments