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Air New Zealand announces record profit, dividend and staff bonus

August 29, 2016 Financial No Comments Email Email

Air New Zealand has today announced earnings before other significant items and taxation* for the 2016 financial year of $806 million, compared to $474 million in the prior year. Earnings before taxation were $663 million with net profit after taxation of $463 million, an increase of 40 percent and 42 percent, respectively.

A 2016 final fully imputed ordinary dividend has been declared of 10.0 cents per share, bringing the full year ordinary declared dividends to 20.0 cents per share, an increase of 25 percent on the prior year. The Board also declared a fully imputed special dividend of 25.0 cents per share.

In recognition of the record result, the Board has awarded a Company Performance Bonus of up to $2,500 that will be paid next week to 8,200 Air New Zealanders who do not have other incentive programmes as part of their employment agreement.

Chairman Tony Carter says the airline’s staff are critical to its success.

“We recognise the importance of working collaboratively with our unions through our High Performance Engagement programme to achieve results that benefit both our business and our people.  This has been an important contributor to our ability to achieve efficiencies,” Mr Carter says.

Chief Executive Officer Christopher Luxon says the airline ended the year with customer satisfaction at record highs, brand health in excellent shape, the number one corporate reputation in New Zealand, and the staff culture at the airline continuing to further improve.

“These are the best results ever in our 76 year history and I am extremely proud of the airline’s achievements, our people and the contribution we make to supercharging New Zealand’s success.  Alongside connecting New Zealanders and Kiwi businesses with each other and the world, we employ 11,300 staff, will pay the Government around $260 million in total dividends and will pay income tax of around $200 million for the year,” Mr Luxon says.

Looking ahead, he acknowledges there is increased competition as other international airlines also add capacity in recognition of strong tourism demand for New Zealand.

“There’s no doubt customers have more choice but we are confident that we have the right pricing, products and services to stay a step ahead of the competition as we grow our business at home and overseas,” says Mr Luxon.

Givn the uncertain impact of competition and based on the current market conditions, the airline expects earnings before taxation for the full year 2017 to be in the range of $400 million to $600 million.**

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