Air NZ flags weaker earnings, citing Rolls-Royce engine issues
Air NZ expects much weaker earnings in its 2019 financial year, it said Wednesday, citing higher costs after problems with some Rolls-Royce engines. The carrier said it expects pre-tax earnings of between NZ$340m (US$232.59m) and $400m for the year to June 30, against initial guidance of $425m to $525m. Air NZ is one of several Boeing 787 operators affected by maintenance issues on Rolls-Royce's Trent 1000 engines. Problems with a deteriorating compressor in the engines had forced a number of airlines to ground flights. Earnings will take a hit of about $30m to $40m from the resulting schedule changes, Air NZ said. The carrier also said revenue growth has slowed, though lower jet fuel costs offer some relief. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2019-01-30/star/air-nz-flags-weaker-earnings-citing-rolls-royce-engine-issues
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Air NZ flags weaker earnings, citing Rolls-Royce engine issues
Air NZ expects much weaker earnings in its 2019 financial year, it said Wednesday, citing higher costs after problems with some Rolls-Royce engines. The carrier said it expects pre-tax earnings of between NZ$340m (US$232.59m) and $400m for the year to June 30, against initial guidance of $425m to $525m. Air NZ is one of several Boeing 787 operators affected by maintenance issues on Rolls-Royce's Trent 1000 engines. Problems with a deteriorating compressor in the engines had forced a number of airlines to ground flights. Earnings will take a hit of about $30m to $40m from the resulting schedule changes, Air NZ said. The carrier also said revenue growth has slowed, though lower jet fuel costs offer some relief. <br/>
