Announcement

HALFYR: AIR: Air New Zealand announces 2019 Interim Result 08:31a.m. 
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