Air NZ has unveiled a big jump in profits this morning, with
a $182m net profit after tax for the full year - up 156 per
cent from the year before.
The airline is paying a final dividend of 5 cents a share,
taking its total dividend for the year to 8 cents a share - a
45 per cent jump from last year's shareholder payout. The
profit lift was largely anticipated by analysts.
Chairman John Palmer said this morning's result placed 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." he said.
Air New Zealand says it will spend around $1.8 billion on new
planes over the next three years.
These include six new Boeing 787-9 'Dreamliners' and two new
Boeing 777-300ERs. It is also buying nine shorter- range
Air New Zealand has said the first of its 787s will replace
replace older aircraft flying to Asia, Western Australia and
holiday destinations in the Pacific.
The airline will fit the plane out with new slimline seats in
the economy cabin and will have premium economy and business
premier seating. The 787-9 can carry between 250 and 290
passengers but the configuration, crucial for passenger
comfort, has not been announced.
The Boeing 787-9 Dreamliner - the larger version of the jet -
is set to go into service with Air New Zealand next year. The
airline plans to buy six of the planes. The Boeing 787-9
Dreamliner - the larger version of the jet - is set to go
into service with Air New Zealand next year. The airline
plans to buy six of the planes.
Dreamliners use carbon fibre composite material extensively
to cut down on weight and add strength to their fuselage and
wings. The aircraft promises fuel savings of 20 per cent
compared with planes of similar size.
The Government has said it plans to sell down its stake from
around 74 per cent of the airline to 51 per cent as part of
its mixed ownership model in which almost half of the state
owned power companies are being sold.
Forsyth Barr analyst Rob Mercer said the 2014 profit may lift
if foreign exchange and fuel costs remain well balanced.
Shares in Air New Zealand have traded between 89c and $1.55
and this morning start trading at $1.37.
• Earnings before taxation of $256 million, an increase of
172 per cent
• Net profit after taxation of $182 million, an increase of
156 per cent
• Operating revenue $4.6 billion, up three per cent
• Operating cash flow of $750 million, a record for the Group
• Gearing improved seven percentage points to 39.1 per cent,
a record low
• Fully imputed final dividend of 5.0 cents per share, taking
total dividend to 8.0 cents per share