WELLINGTON: Air New Zealand expects to almost double pre-tax profit in the first half of 2015/16 as the airline benefits from lower fuel prices, a simplified fleet and a “buoyant” tourism market.
The Star Alliance carrier had guided the market to expect “significant earnings growth” in the current year at its 2014/15 results presentation in August and chairman Tony Carter told shareholders at Wednesday’s annual general meeting in Auckland that view had “strengthened” after a strong start to 2015/16.
“We are very pleased with the first quarter performance of the 2016 financial year and the business is on target to exceed profit before tax of $400 million for the first half of this financial year,” Carter said in prepared remarks.
“Looking ahead, the company is very well positioned with buoyant tourism to New Zealand, a lower current fuel price environment, an increasingly efficient fleet and a company with proven agility in responding to changing circumstances.
“As a consequence, we are confident of our ongoing strong performance in the coming years. “The company is in the best shape it has ever been and ready to seize on the many opportunities in front of it.”
The forecast of NZ$400 million profit before tax excludes any contribution from its 26 per cent shareholding in Virgin Australia, suggesting the result for the six months to December 31 2015 could be even higher given Virgin is expected to be profitable and therefore make a positive contribution to Air NZ’s bottom line in 2015/16.
