Air NZ profit down 19pc
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Air New Zealand today announced a normalised profit after tax of $118 million down 19 per cent on last year.
The airline said it had been hit by a rugged first half of the financial year but the second half had seen dramatic improvement.6 billion, down $58 million or 1.
Operating revenue for the year was $4.6 per cent decrease in demand.2 per cent on the same period last year, with passenger revenue down $74 million on a 7.
“Air New Zealand’s profitability against the backdrop of a global economic meltdown was underpinned by management’s decision to move rapidly ahead of competitors to reduce capacity at the first signs of waning demand and an ability to continue to invest and innovate with confidence.
“This result positions Air New Zealand as one of the top airline performers globally but it falls short of delivering shareholders an appropriate commercial return,” chairman John Palmer said.5 cents per share.”
The Board has declared a fully imputed dividend of 3.
“We will continue to invest in new products, technology and customer service, while keeping a strong focus on reducing costs and becoming even more efficient.
Chief Executive Officer Rob Fyfe said that while some certainty is provided by hedge positions relating to foreign exchange and fuel price, demand remains difficult to predict.”
“Although there are some early indicators that the slump in travel demand may be showing signs of having bottomed out, it would be naive to think that there won’t be bumps on the road to economic recovery. .
Normalised profit after tax of $118 million
Operating revenue down 1.”
Demand for air travel was stabilising, yields remain under significant pressure, fuel prices have resumed an upward trend and we are unlikely to achieve the same level of net hedging gains, Mr Fyfe said.6 billion
Passenger demand down 7.2pc to $4.6 billion, up 22pc
Final dividend of 3.6pc Net cash position $1.5 cents