Air New Zealand posts Second Highest Profit on record

It’s the second highest annual profit in the history of the airline, up from $527 million last year. The airline – which is 53 percent owned by the Government – has committed $150 million of that profit to invest in new cabins, digital products and lounges over the next four years.

The profit is good news for the airline’s employees, most of them will receive an $1800 bonus. Shareholders will receive a final dividend of 11 cents per share, taking the total 2018 dividend to 22 cents per share.

The last 12 months have been challenging for Air NZ, with the biggest issue being the ongoing technical problems with engines on its Dreamliner fleet.

CEO Christopher Luxon thanked the airline’s customers for their patience and understanding. “I want to acknowledge the patience and loyalty of our customers who have been impacted by operational disruptions while travelling with us this year. These disruptions have resulted in a level of service for some that did not meet the high standards we set for ourselves,” Luxon said.

To assist the airline in dealing with the engine issue, it has confirmed it’ll lease three additional widebody aircraft, two Boeing 777-200s and one Boeing 777-300. They have already started operating ZK-OKI – which is an ex Singapore Airlines 777-200ER. And over the past few days, ZK-OKT has come online, which is being leased from Eva Air.

Its a busy year ahead for Air NZ. Soon, it will begin new direct services to Chicago and Taipei as well as extending their Auckland to Singapore service with a third daily service.

Air New Zealand are also awaiting their first A320NEO and A321NEO aircraft, which have been delayed. They are going to be using this fleet of new aircraft on their Tran-Tasman and Pacific Island routes, replacing their ageing A320CEO fleet.

Some other figures from the financial release

• Net profit after taxation of $390 million, up 2.1 percent
• Operating cash flow of $1 billion, up 14 percent
• A fully imputed final dividend of 11.0 cents per share, bringing the 2018 full year fully imputed ordinary dividends to 22.0 cents per share, an increase of 4.8 percent from the prior year
• Commitment to third short-term leased widebody aircraft to further assist with schedule reliability during ongoing maintenance requirements associated with the global Rolls-Royce Trent 1000 engine issues. With this one being a 777-300ER rather than the two current 777-200ER’s which are on lease.