Air New Zealand releases 2024 annual report

The put up Air New Zealand releases 2024 annual report appeared first on TD (Journey Every day Media) Travel Daily Media.

Air New Zealand launched its annual report for the 12 months ending 30 June 2024 with outcomes reflecting the challenges of the previous 12 months.

The airline introduced earnings earlier than taxation for the 2024 monetary 12 months of $222 million in comparison with $574 million for a similar interval final 12 months.

This was an anticipated discount on the prior 12 months, when the airline recorded one in every of its highest ever outcomes following the reopening of New Zealand’s border. Web revenue after taxation was $146 million.

Whereas Air New Zealand reported a strong first half consequence, the second half of the monetary 12 months proved more and more difficult because the affect of operational and financial headwinds turned extra pronounced.

Financial challenges

The harder financial backdrop in New Zealand drove a deterioration in home demand within the second half, significantly for company and authorities segments.

Accelerated upkeep necessities for Pratt & Whitney PW1100 engines worldwide have meant that as much as six of the airline’s latest and best Airbus neo plane have been out of service at occasions. Ongoing extra upkeep necessities on the Trent 1000 engines that energy the present Boeing 787 Dreamliner fleet and lowered ranges of spares available in the market have meant that as much as three Dreamliners are additionally on the bottom at occasions. These points, alongside elevated competitors from US carriers and the cumulative impact of excessive inflation, have had a major affect on the airline’s operational and monetary efficiency for the 2024 monetary 12 months.

Passenger income elevated 11 % to $5.9 billion, pushed by a 23 % ramp-up in capability, primarily throughout the worldwide long-haul community. This was partially offset by the weaker demand surroundings and better ranges of competitors. Additionally included inside passenger income is $90 million of credit score breakage for unused buyer credit that had been thought of extremely unlikely to be redeemed.

Operational prices

Whereas common jet gas costs had been barely decrease for the 12 months, whole gas prices elevated by round $190 million, pushed by capability development throughout the community. Non-fuel working prices elevated sooner than income, additionally pushed by the rise in capability, in addition to broad based mostly inflation throughout the associated fee base.

Non-fuel working value inflation of roughly $225 million was a major drag on the airline’s monetary efficiency. With touchdown expenses, air navigation charges and engineering supplies main the will increase, the non-fuel working value uplift of six % for the 12 months brings the cumulative affect of inflation throughout the previous 5 years to twenty to 25 %. Whereas development within the community has offered some scale advantages, productiveness stays beneath the degrees achieved pre-Covid because the airline carries additional prices to assist handle ongoing disruptions within the provide chain.

Primarily based on the airline’s stability sheet energy and the consequence introduced at present, shareholders will obtain a closing unimputed unusual dividend of 1.5 cents per share, taking the entire unusual dividends declared for the 12 months to three.5 cents per share. 

The dividend shall be paid on 26 September, to shareholders on file as at 13 September.

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