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BURNING PAST FUEL: Air New Zealand earns $540M in 'challenging environment'

Higher fuel prices couldn't keep Air New Zealand from achieving its second highest earnings before taxation of $540 million during the 2017/18 financial year.

Higher fuel prices couldn’t keep Air New Zealand from achieving its second highest earnings before taxation of $540 million during the 2017/18 financial year.

The carrier proudly announced the “impressive financial result” today, saying it was 2.5 percent more than the $527 million made during the prior 12 months.

Record operating revenue climbed 7.4 percent to $5.5 billion, and net profit after taxation reached $390 million, up 2.1 percent.

Air New Zealand

Air New Zealand’s Chairman Tony Carter said the strong result demonstrates the airline’s resilience as it was achieved in a “challenging environment” brought on by higher fuel prices.

“The ability of the airline to achieve its second highest profit in such a challenging environment really speaks to the [airline’s] focused strategy and unique competitive advantages.”

Tony Carter, Air New Zealand Chief Executive

Tony added that staff also played a significant role in the airline’s annual gain and said their hard work would be rewarded with bonuses of up to $1,800. This will be paid next week to some 8,500 Air New Zealanders.

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Shareholders can expect their own thank you in the form of a final dividend of  11.0 cents per share. This takes the total ordinary
declared dividend for the year to 22.0 cents per share, an increase of 4.8 percent from the prior year. It will be paid on 19 September.

Air New Zealand’s Chief Executive, Christopher Luxon, said that although he’s pleased with financial results, he believes the airline’s level of service was compromised on occasion due to operational disruptions.

He hopes to minimise these disruptions in the future by making improvements across all touch points of the travel journey, including greater schedule reliability by leasing three widebody aircraft – two Boeing 777-200s and one Boeing 777-300.

 

Have you flown with Air New Zealand over the last year?