Air New Zealand has announced its end of financial year results, posting a net profit of $270 million for the year ending June 30.
The airline says its result was driven by operating revenue growth of 5.3 percent, which was offset by a nearly $200 million increase in the price of fuel.
The Dreamliner engine issue also hit the airline's bottom line, with temporary operating costs as Air NZ sought to improve network resiliency while dealing with the ongoing global Rolls-Royce engine issues.
The figures:
- 2019 earnings before taxation: $374 million
- 2018 earnings before taxation: $540 million
- 2019 net profit after taxation: $270 million
- Operating cash flow: $986 million
- Operating revenue: $5.8 billion
- Final dividend: 11.0 cents per share
- Annual ordinary dividend: 22.0 cents per share
Air NZ shareholders will receive a final dividend of 11 cents per share, to be paid on September 18. This is in line with last year's total ordinary dividends of 22 cents per share.
Outgoing CEO Christopher Luxon says the airline is looking at cutting costs following a lengthy review into its business.
"We know we already run a tight ship and that any further cost savings will require exponential effort," says Luxon.
"That is why we have selected a respected external consultancy to assist with this process. They can provide us with an outside perspective and are able to benchmark us to provide a clear understanding of how our processes compare with global peers."
Luxon has suggested he'll look at moving into politics following his role at Air NZ later this year, telling the AM Show he's interested in standing for the National Party.
The year ahead will be a busy one for the airline.
It will take delivery of six ATR aircraft and three Airbus A320/321 NEO aircraft, which it hopes will provide continued growth, fuel efficiency and cost benefits on the Tasman and Pacific Islands network.
An additional Boeing 787-9 Dreamliner will also join the fleet this year.
Earlier this year, Air NZ announced it would be replacing its Boeing 777-200 aircraft with Boeing 787-10 Dreamliners.
These aircraft, which offer a 25 percent increase in fuel efficiency, will begin arriving from the 2023 financial year.
Newshub.
