Air New Zealand Reports Net Profit of NZ$129 Million for July-December 2023

Air New Zealand Boeing 787-9

Air New Zealand has announced its financial results for the period from July to December 2023, with a net profit of NZ$129 million.

The increase in international flight capacity led to passenger revenue reaching NZ$3.1 billion. An interim dividend of 2 cents has been declared.

Since September, there has been a softening in domestic business and government demand, and excluding fuel, operational costs have increased by approximately 5% due to inflation. The airline is adjusting its pricing and supply to reflect the inflation.

Due to inspections of Pratt & Whitney engines, up to five aircraft will be out of service at any time for at least the next 18 months, necessitating schedule changes and the use of leased aircraft. The competition has been intensified as American airlines have redirected aircraft intended for China routes to the New Zealand market.

On the other hand, improvements have been made in punctuality and customer service wait times, along with enhancements to in-flight meals, entertainment, and Wi-Fi, resulting in customer satisfaction levels recovering to pre-COVID levels. New Boeing 787 aircraft are expected to be introduced by mid-2025, and refurbishment of existing aircraft is proceeding smoothly.

Although there are warnings of significant impacts on performance in the second half, the airline anticipates a pre-tax profit of between NZ$200 million to NZ$240 million for the full year.

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