Air New Zealand profits more than double

Air New Zealand profits more than double

Air New Zealand saw annual profits more than double and it is to acquire 21 more aircraft.

The carrier's net profits rose by 156% to NZ$182 million ($142 million) on revenue up by 3% to NZ$4.6 billion in the year to June 30.

The airline plans to invest NZ$1.8 billion in new aircraft over the next three years, including six Boeing 787-9s, the stretch version of the Dreamliner.

Air New Zealand is a launch customer for the new Boeing type, and expects to take delivery of the first of its 787-9s next June.

The company also plans to buy nine Airbus A320s, two Boeing 777-300ERs, and four ATR72-600s.

Chief executive Christopher Luxon believes the result makes Air New Zealand "one of the strongest-performing airlines" in the world.

He told the Associated Press that the carrier is benefiting from a shift in global economic power from the Atlantic to the Pacific and a corresponding increase in demand for Asian and Pacific routes. He said the company's business in China was up 55%.

The company announced a final annual dividend of 8 New Zealand cents per share, up 45 percent. Operating cash flow was NZ$750 million, and before-tax profit was NZ$256 million.

The New Zealand government owns 73% stake in the airline but plans to reduce that to 51% in the next few years by selling some of its shares.

 


 

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