Air New Zealand Reports Net Profit of NZ$382 Million

Air New Zealand has reported earnings before tax for the 2017 financial year of NZ$527 million.

This compares to NZ$663 million in the prior year - the second highest result in the airline’s history. Net profit after tax was NZ$382 million.

A 2017 final fully imputed dividend of 11.0 cents per share has been declared, an increase of ten percent on the prior year, bringing the full year declared ordinary dividends to 21.0 cents per share.

“Based on the airline’s strong financial position, future capital commitments and improving trading environment, the Board felt it appropriate to increase the dividend,” said Mr Tony Carter, Chairman, Air New Zealand. “The final dividend will be paid on 18 September 2017 to investors on record at the close of business on 8 September 2017.”

In recognition of the result, the Board has awarded a Company Performance Bonus of up to NZ$1,700 to be paid next week to approximately 8,500 Air New Zealanders who do not have other incentive programmes as part of their employment agreement.

Chief Executive Officer Christopher Luxon said, “This year Air New Zealand faced an unprecedented increase in the level of competition from some of the world’s largest airlines and effectively rose to the challenge. The impressive way our team responded to the new competition while at the same time achieving commercial, customer and cultural excellence, helped to deliver our second highest profit ever.”

The airline’s loyalty programme, Airpoints, continues to grow, with more than 2.5 million members, up 16% on the previous year.

The number of Australian members, the largest offshore market for Airpoints, grew by more than 17% in the past 12 months.

In 2018, Air New Zealand will continue growing its comprehensive domestic network, while the airline’s offshore growth will focus on the Japan market with the addition of Haneda, as well as increasing services during peak season across routes in the Pacific Islands and North and South America. 

2017 Highlights

* Earnings before tax of NZ$527 million
* Net profit after tax of NZ$382 million
* Operating revenue of NZ$5.1 billion
* 16 million passengers carried during the year
* Capacity increased 6.3%
* Operating cash flow of NZ$904 million
* Pre-tax return on invested capital of 15.3%
* Total annual shareholder return of 88.6%
* Fully imputed final dividend of 11.0 cents per share, a 10% increase on the prior year, bringing the 2017 full year fully imputed ordinary dividends to 21.0 cents per share
* Expected aircraft capital expenditure of NZ$1.5 billion over the next 4 years
* Company Performance Bonus of up to NZ$1,700 paid to all permanent employees who do not participate in a Short Term Incentive programme.

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