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Air New Zealand has posted a strong rise in full year net profit and expects to grow capacity and profits in 2014/15.
The Kiwi flag carrier reported net profit after tax of $NZ262m ($A235m) for the 12 months to June 30 2014, up 45 per cent from $NZ181 million in the prior corresponding period.
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It was Air NZ’s third straight year of profit growth.
Revenue rose one per cent to $NZ4.7bn ($A4.2bn), Air New Zealand said in a regulatory filing to the New Zealand stock exchange on Wednesday.
Air NZ chairman Tony Carter said the airline expected to significantly grow capacity in 2014/15, as new aircraft entered the fleet.
“With new aircraft offering better operating economics, an optimised network with the right alliance partners, disciplined cost management and a daily focus on improving the customer experience, we are very well positioned to continue growing,” Carter said in a statement.
“Based on our current expectations of market demand and fuel prices, we expect to improve on the 2014 result in the coming year.
“This outlook excludes equity earnings from the Virgin Australia shareholding.”
Normalised earnings before tax rose 30 per cent to $NZ332m (A$298m), Air NZ said.
“Operating revenue, capacity and yields grew across the network, while unit costs remained stable,” the airline said.
Air NZ has taken delivery of its first Boeing 787-9 and will resume service to Singapore after its alliance with Singapore Airlines was given the green light by regulators.
“Forming alliances with the right partners in the right markets is a key pillar of our Go Beyond strategy,” Air NZ chief executive Christopher Luxon said.
“Strong alliances such as this provide us with a platform for sustainable growth, allowing us to open up new routes and markets across the Pacific Rim.”
The Kiwi flag carrier also has partnerships with Cathay Pacific and Virgin Australia.
Air NZ expected to take delivery of two 787-9s, four Airbus A320s, three ATR 72-600 turboprops and one Boeing 777-3000ER in 2014/15.
The company declared a final dividend of 5.5 cents per share, as well as a special dividend of 10 cents per share.
John Harrison
says:Well Done to Air New Zealand, great proformance with all the right equipment. Like the countries Rugby Team World Beaters, showing the “Aussie’s” how its done. Shame on Qantas still, and tomorrow we will find out how much more trouble Mr Joyce has lead Qantas into. Again Well Done AIr NZ.