Airline News
Air New Zealand posts record profit as it takes on ‘Air Sydney’
August 31st 2015
Air New Zealand (Air NZ) has reported a net profit of NZ$327 million ($213 million) for the financial year ended 30 June 2015, an increase of 24% over NZ$263 million posted in the previous year. Read More » Auckland-based Air NZ’s operating revenue was up 6% for the 12 months, with expenses rising 3.2%. Passengers carried increased 4.2%, to 14.3 million, comprising 3.6% growth in short-haul traffic and a 9.3% expansion in international passengers. Load factor remained stable year-on-year at 84.1% and yield increased 0.2% (+2.2% in short haul operations, but -1.3% internationally). Air NZ said capacity expansion, supported by strong demand, cost efficiencies and lower fuel prices contributed to “the significant earnings growth”.
For the next financial year, Air NZ forecast an 11% increase in total capacity (8% domestic and 15% international), as it expands its presence in Australia, Asia and North America and, for the first time, adds service to South America with the launch of Buenos Aires on December 1. “Given the current known operating environment, along with our increased capacity and improved operating efficiencies, we expect to achieve significant earnings growth in the coming year,” Air NZ board chairman, Tony Carter, said at the results announcement in Auckland.
Speaking to Australia’s Sydney Morning Herald last week, Air NZ chief, Christopher Luxon, said his carrier would focus on attracting more Australian passengers to transit through its Auckland hub to North and South America. Luxon added bookings from Australia on Air NZ’s new Buenos Aires and Houston routes had exceeded expectations and that the number of Australians enrolled in its Airpoints frequent flyer program had grown by 20% in the past 12 months. Luxon said there was room to grow for Air NZ in Australia as “there are bits of Australia under-served” as much of rival Qantas Airways’ focus in Australia tends to be around Sydney”. Luxon quipped the Australian flag carrier might as well be renamed to “Air Sydney”. With Air NZ’s earnings double those of Qantas in proportion to the size of the carriers, he has good reason to be pleased.
