Air NZ delivers small rise in full-year profit as fuel bites
Air NZ reported a 1.9% rise in full-year operating profit of NZ$1.29b, despite contending with a net NZ$135m increase in fuel costs. Operating revenue for the year to 30 June increased 7.4% to NZ$5.5b, as both cargo and passenger revenues showed strong growth. RASK excluding the impact of foreign exchange was up 1.8% as RPKs increased 5.3% on capacity growth of 5%. The carrier noted that demand on is domestic and transtasman route exceeded expectations, while Pacific Islands, Asia, Americas and Europe routes were in-line with expectaitons laid down in February. Operating expenditure increased by 9.2% to NZ$4.19b, pushing CASK up 4%, largely due to higher fuel prices. Earnings before tax increased 2.5% to NZ$540m, while net profit after tax increased 2% to NZ$390m. While welcoming the results, CE Christopher Luxon admitted that it has been a challenging period for the airline, which has had to deal with disruptions caused by issues with the Rolls-Royce Trent 1000 engines that power its fleet of Boeing 787-9s. "While we are very proud of the financial achievements of the 2018 financial year, I want to acknowledge the patience and loyalty of our customers who have been impacted by operational disruptions while travelling with us this year,” he says. “These disruptions have resulted in a level of service for some that did not meet the high standards we set for ourselves.” As a result, the carrier is leasing in two 777-200s and one 777-300ER to cover the downtime on its 787 fleet due to additional inspections required on the Trent 1000s.<br/>
https://portal.staralliance.com/cms/news/hot-topics/2018-08-23/star/air-nz-delivers-small-rise-in-full-year-profit-as-fuel-bites
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Air NZ delivers small rise in full-year profit as fuel bites
Air NZ reported a 1.9% rise in full-year operating profit of NZ$1.29b, despite contending with a net NZ$135m increase in fuel costs. Operating revenue for the year to 30 June increased 7.4% to NZ$5.5b, as both cargo and passenger revenues showed strong growth. RASK excluding the impact of foreign exchange was up 1.8% as RPKs increased 5.3% on capacity growth of 5%. The carrier noted that demand on is domestic and transtasman route exceeded expectations, while Pacific Islands, Asia, Americas and Europe routes were in-line with expectaitons laid down in February. Operating expenditure increased by 9.2% to NZ$4.19b, pushing CASK up 4%, largely due to higher fuel prices. Earnings before tax increased 2.5% to NZ$540m, while net profit after tax increased 2% to NZ$390m. While welcoming the results, CE Christopher Luxon admitted that it has been a challenging period for the airline, which has had to deal with disruptions caused by issues with the Rolls-Royce Trent 1000 engines that power its fleet of Boeing 787-9s. "While we are very proud of the financial achievements of the 2018 financial year, I want to acknowledge the patience and loyalty of our customers who have been impacted by operational disruptions while travelling with us this year,” he says. “These disruptions have resulted in a level of service for some that did not meet the high standards we set for ourselves.” As a result, the carrier is leasing in two 777-200s and one 777-300ER to cover the downtime on its 787 fleet due to additional inspections required on the Trent 1000s.<br/>
