The Blue Swan Daily, 23 August 2019 – Air New Zealand has announced earnings before taxation for the 2019 financial year of NZD374 million, compared to NZD540 million in the prior period. Net profit after taxation was NZD270 million and operating cash flow was NZD986 million. The airline says the result was driven by operating revenue growth of +5.3%, which was offset by a NZD191 million increase in the price of fuel, as well as a temporary increase in operating costs as the airline “sought to improve network resiliency” in the face of the global Rolls-Royce engine issues.
Chairman Tony Carter acknowledges that while the carrier is “disappointed” not to have meet the financial expectations is set at the start of the year, he says it has been operating in a “different demand environment” over the 12 months period. “To have achieved a solid result despite these headwinds speaks volumes about the extraordinary dedication and commitment of our people,” he says.
Air New Zealand took “immediate steps to review network, fleet and cost base” to better position itself in this lower growth environment. “While we have made progress, this work is still ongoing,” says Mr Carter.…read more