Air New Zealand reported a net profit increase of NZ$140 million ($116.5 million) for the first half of the 2014 financial year, up 40% from NZ$100 million in the year-ago period. Revenue was down 1.6% to NZ$2.3 billion.
For the first six months of the 2014 financial year, Air New Zealand chairman Tony Carter said its normalized earnings before taxation were NZ$180 million, up 29% on the previous corresponding period. Statutory earnings before taxation were NZ$197 million. Load factor increased to 84.3% and yield was 13.6 cents.
Carter said that with stable fuel prices and a traditional seasonal earnings pattern of a stronger first half, Air New Zealand expects to deliver a full-year result of normalized earnings before taxation in excess of $300 million.
CEO Christopher Luxon said the carrier expects to deliver capacity growth of around 8% in the 2015 financial year as new Boeing 787-9s and 777-300s enter its fleet from the middle of this calendar year. “Additionally, new Airbus A320 and ATR 72-600 aircraft will be growing capacity in our domestic network over the next year,” he said.
Luxon said a highlight of the first six months of the 2014 financial year was the continuing strength of Air New Zealand’s alliances.
“Through our alliance partnerships we are able to offer more connections, frequencies and destinations than ever before. Alongside our 27 Star Alliance partner airlines, we also have deep individual alliance relationships with Virgin Australia and Cathay Pacific, and look forward to working on our new relationship with Singapore Airlines,” he said.
Air New Zealand and Singapore Airlines recently unveiled a proposed new alliance which, subject to regulatory approval, would see the return of Air New Zealand onto the Singapore route and enable customers to access codeshare travel on Singapore Airlines’ extensive global network.
“Forming the right alliances with the right partners allows us to deliver on our strategy of profitable growth as a Pacific Rim airline,” Luxon said, adding that the carrier continues to be optimistic about the future of Virgin Australia.
“Virgin Australia has a sound strategy and I look forward to helping the airline to realize its potential when I join its board. We are confident that over the coming years Virgin Australia can deliver consistent earnings performance.”