AIR NEW ZEALAND PROFITS SOAR

Air New Zealand has reported earnings before taxation of $256 million for the 2013 financial year, an increase of 172% on the previous year and the company’s best result in five years. The net profit after taxation was $182 million, which is $111 million or 156% up on the previous year. Operating cash flow was the highest ever at $750 million, and the company reported cash holdings of $1.15 billion. Gearing improved seven percentage points to 39.1%, a record low for the airline. A fully imputed final dividend of five cents per share has been declared, taking the total dividend for the year to eight cents per share, a 45% increase on the previous year.

Chairman John Palmer says the result places Air New Zealand amongst the best performing airlines globally. “We are focused on further improving on this result in the 2014 financial year. Based on the airline’s forecast of market demand and fuel prices at current levels, early results and forward bookings are encouraging.”

Air New Zealand has committed to investing NZ$1.8 billion in aircraft over the next three years. The aircraft due to enter the Air New Zealand fleet over the next three years are: two Boeing 777-300ERs; six Boeing 787-9s; nine Airbus A320s; and four ATR72-600s.