Air New Zealand has posted results highlight the ongoing demand for air travel which sparked the carrier’s rapid recovery.

Air New Zealand’s earnings before other significant items and taxation were $585 million for the 2023 financial year. Statutory earnings before taxation were $574 million (AUD $529m) compared with a loss of $810 million (AUD $746m) the previous year.

The profit turnaround will help the carrier fund new aircraft, digital investments and facilities, and increased wages for frontline staff.

Air New Zealand has committed to a special dividend of 6.0 cents per share declared for the 2023 financial year.

Upon review of capital management settings, the board also announced a revised capital management framework, effective from the 2024 financial year.

“We are proud of the result Air New Zealand has delivered this financial year, and the value we have created for our shareholders,” chair, Air New Zealand, Dame Therese, said.

“This result would not have been possible without our remarkable team of Air New Zealanders.

“Their grit, determination and commitment to deliver exceptional service for our customers is second to none.”

Greg Foran, CEO of Air New Zealand said the result follows a year in which the airline balanced customer, staff, community and shareholder needs while making investments for the years ahead.

“A strong Air New Zealand is good for New Zealand,’ Foran, said.

We have rehired and trained in a tight labour market, lifted the starting wage for the airport teams to $30 an hour and improved the way we work with digital systems on the ground and in the air.

“Restoring services to 500 flights a day is not only good for Kiwis who’ve been able to take that long planned holiday, but it has also brought tourist dollars back to the regions and supports exporters who rely on regular air freight.

“We know increased costs and high demand have made flying more expensive. In the past year we put more aircraft and seats in the air, so there are more choices for customers which helps alleviate the cost of flying.

“At the same time, our own costs continue to rise and the reality is that airfares are unlikely to return to pre-pandemic levels.

“After several volatile years it’s great to be back in the black and standing on our own two feet especially given we have more than $3.5 billion in aircraft investment coming over the next five years.”

Air New Zealand also announced an order for two new ATR turboprop aircraft for regional routes as well as two new Airbus A321neo in addition to its incoming stock of eight Boeing 787 Dreamliner’s and a domestic fleet of neo’s already ordered.

At the beginning of the financial year, Air NZ had a number of aircraft still stored in the desert. The carrier finished the year with a 94 per cent recovery in its domestic capacity and a 71 per cent recovery in the international market.

New aircraft means 9,000 more trans-Tasman seats every week

Thanks to its new aircraft, Air NZ is increasing seat numbers on flights between Australia and New Zealand.

The A321neo plane by Airbus is one of the leading aircraft on the market right now with 214 seats and its status as the most fuel efficient narrow body aircraft currently available.

Starting October, Air New Zealand will introduce increased services on routes to and from Australia. Across the Tasman, Air New Zealand has 22 percent more seats for Northern Winter (October 2023 – March 2024) compared with the same period last year.

During this period, the airline will add 25 percent more seats on Christchurch-Brisbane and Wellington-Brisbane – that’s 25,000 extra seats between the cities

Wellington-Melbourne will increase 38 percent and Wellington-Sydney up 7 percent. More seats will be added from Auckland to Sydney, Melbourne, Brisbane, Gold Coast and Hobart. 

Air New Zealand chief customer and sales officer, Leanne Geraghty said the new aircraft and additional capacity will further cement Air New Zealand’s leadership on trans-Tasman travel.

“Already, Air New Zealand has more capacity and flights across the Tasman than any other airline and our additional seats in time for summer, along with the arrival of new aircraft, will see that increase further,’ Geraghty, said. 

“For Australians heading across the ditch, the New Zealand experience starts the moment they step onboard with Air New Zealand and receive our world famous manaaki (care). 

“We’re proud to offer Australians an exceptional experience at competitive fares. We look forward to welcoming even more of our Aussie neighbours onboard from October.

Across its international network, Air New Zealand will fly more than 75 flights a day across 36 global routes, with 560,000 extra seats on offer compared with the previous year for the Northern Winter period.

Featured Image: Air New Zealand A3320neo (Supplied).