Air New Zealand has posted a six per cent fall in net profit for the half year but had record normalised earnings before tax of $NZ216 million ($A206.54 million), driven by lower fuel prices and increased passenger numbers.
Net profit was $NZ197 million for the six months ending December 31 with the result including equity accounting losses of $NZ14 million from the carrier’s stake in Australian airline Virgin Australia.
Revenue grew 3.4 per cent to $NZ2.4 billion, underpinned by increased capacity and improved yields across the network, it said.
Chairman Tony Carter said shareholders could be pleased with the result.
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The company in November said that should the current level of jet fuel price continue, there would be significant additional improvement in earnings in the second half of the financial year.
“Fuel prices are lower than in November and the sales momentum has been maintained, further strengthening the company’s outlook for the current period and beyond,” Carter said.
Chief executive Christopher Luxon said the airline would continue to be competitive on fare pricing.
“Air New Zealand customers can expect to see even more competitive pricing. Initiatives like the re-introduction of the popular Night Rider service and its extension to regional New Zealand have been a hit, as have Grabaseat’s low-priced long-haul fares to destinations like Los Angeles and Tokyo”, he said.
The airline has earmarked $NZ3 billion on aircraft capital expenditure over the next six years.
