Air NZ awards staff bonus after second highest profit in its history

  • 23/08/2017
The airline posted its second highest result in its history.
The airline posted its second highest result in its history. Photo credit: Noel Jones

Air New Zealand has announced earnings before taxation for the 2017 financial year of $527 million, compared to $663 million the year prior - the second highest result in the airline's history.

The airline's board awarded a company performance bonus of up to $1700 to be paid next week to approximately 8500 Air New Zealand staff who do not have other incentive programmes as part of their employment agreement.

Air New Zealand's full year earnings have fallen 21 percent in an increasingly competitive market but were still the second highest ever as the airline continues to benefit from lower jet fuel prices and the country's ongoing tourism boom.

In June the company said earnings before taxation were likely to exceed $525m.

Net profit fell to $382m from $463m. Operating revenue slipped to $5.1 billion from $5.23b.

"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," said chief executive Christopher Luxon.

The board declared final fully imputed dividend of 11 cents per share, an increase of 10 percent on the prior year, bringing the full year declared ordinary dividends to 21 cents per share.

Looking forward to the year ahead, the airline said it was optimistic about the overall market dynamics.

Based on current market conditions and assuming an average jet fuel price of $US60 per barrel (which represents the average over the past two months), the airline is aiming to improve upon 2017 earnings, it said.

The shares last traded at $3.40, and have jumped 55 percent this year.

NZN