Air New Zealand posts record annual profits

An Air New Zealand Boeing 787

Air New Zealand says capacity growth supported by strong demand, cost efficiencies and lower fuel prices has helped it record a record annual profits for the year ending June.

The carrier announced on 26 August that net profit rose 24 per cent to NZ$237 million ($153.8 million) for the year, when the airline increased capacity by 6.6 per cent on domestic and international routes.

Earnings before tax were NZ$496 million, an increase of 49 per cent. Operating revenue was NZ$4.9 billion, up 5.9 per cent on 2014.

Air New Zealand’s chairman, Tony Carter, says: “Our strategic initiatives over the past three years have positioned us well to take advantage of market dynamics which have contributed to these results.

“Our investment in new efficient aircraft, the continued development of our alliance partner relationships, world class sales and marketing execution, great customer service and strong focus on cost management have enabled Air New Zealand to achieve revenue growth against a stable cost base.

“We indicated at our interim result that lower fuel prices and current sales momentum have strengthened the company’s outlook, and this has seen the delivery of a record annual result.”

Carter adds given the current known operating environment, along with increased capacity and improved operating efficiencies, the carrier expects to achieve significant earnings growth in the coming year.

Air New Zealand’s chief executive officer, Christopher Luxon, says: “We remain focused on the Pacific Rim as our growth strategy and will continue to provide the best connections, product and service at competitive prices, to maintain and grow our market share in these regions.

“Next year will see further capacity growth in international markets as we look forward to new routes starting in December 2015 to Houston and Buenos Aires. And while we are gearing up to launch these exciting new routes we have a team assessing potential new opportunities in Australia, Asia and the Americas.”

Air New Zealand says it is planning to raise capacity by 11 per cent in the next financial year.