Announcement
HALFYR: AIR: Air New Zealand announces 2019 Interim Result
08:31am
AIR
28/02/2019 08:31
HALFYR
PRICE SENSITIVE
REL: 0831 HRS Air New Zealand Limited (NS)
HALFYR: AIR: Air New Zealand announces 2019 Interim Result
Air New Zealand announces interim profit of $211 million and maintains
interim dividend of 11.0 cents per share
Air New Zealand today announced earnings before taxation of $211 million for
the six month period ended 31 December 2018, compared to $323 million in the
prior period. Net profit after taxation was $152 million.
Shareholders of Air New Zealand will receive a fully imputed interim dividend
of 11.0 cents per share, in-line with the prior period. The dividend will be
paid on 27 March, to shareholders on record as at 15 March.
Chairman Tony Carter thanked the team of over 12,000 Air New Zealanders for
their hard work and customer focus during a very challenging operational
period for the airline.
Key drivers of the interim result included operating revenue growth of 7.1
percent, which was more than offset by a 28 percent increase in fuel price
and increased operational costs. Operating cash flow of $475 million
remained strong despite the headwinds faced over the period.
At a time when the New Zealand market has seen foreign competitors reduce
capacity or exit services completely, Air New Zealand continues to support
strong market development activities to stimulate inbound visitors to the
country. Recent route launches to Chicago and Taipei have performed ahead of
expectations, and the airline recently launched a third daily service from
Auckland to Singapore, in conjunction with its alliance partner Singapore
Airlines.
Looking ahead to the remainder of the year, Chief Executive Officer
Christopher Luxon acknowledged the rate of growth in the New Zealand market
is slowing from previous years to be more in-line with other developed
markets. Accordingly, the airline will be reviewing its network, fleet and
cost base to reflect the new environment.
"While we continue to expect solid growth across our key markets including
domestic New Zealand, we cannot ignore signals that the rate of growth has
slowed somewhat from prior years. We pride ourselves at Air New Zealand on
being nimble and able to quickly adjust our business to reflect the changing
macro environment and this time is no different."
The airline's comprehensive review of its network, fleet and cost base is
progressing well and an update is expected by the end of next month.
Air New Zealand remains committed to its Pacific Rim strategy and connecting
New Zealanders to each other and the world. To support that commitment,
earlier this week the airline announced it has reduced its lowest fares
across the domestic network.
Mr Luxon said "we are committed to ensuring that air travel is more
affordable than ever for Kiwis, whether they are flying from the main centres
or from regional airports. With prices as low as $39, and with our unmatched
network of over 400 flights a day to 20 different destinations in New
Zealand, there has never been a better time to get out and explore this
amazing country."
Outlook
Air New Zealand issued a revised outlook for the 2019 financial year on 30
January, prompted by slower revenue growth expectations in the second half of
the year. The airline today reaffirms that outlook statement for the
financial year ending 30 June 2019.
Based upon current market conditions and assuming an average jet fuel price
of US$75 per barrel for the second half of the financial year, 2019 earnings
before taxation is expected to be in the range of $340 million to $400
million.
Interim Financial Highlights
o Operating revenue of $2.9 billion, up 7.1%
o Earnings before taxation of $211 million, down 35%
o Net profit after taxation of $152 million, down 34%
o Operating cash flow of $475 million, down 0.8%
o Fully imputed interim dividend of 11.0 cents per share, consistent with
prior period
Ends
Issued by Air New Zealand Public Affairs ph +64 21 747 320
End CA:00331245 For:AIR Type:HALFYR Time:2019-02-28 08:31:56
Click here
to view related attachments.
