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Big bonuses this week for 8200 Air New Zealand staff

August 29, 2016 Headline News No Comments Email Email

egtmedia59Air New Zealand will pay 8200 of its staff up to NZD 2500 each this week to help celebrate its best annual financial result ever.

The sum, equivalent to AUD 2390, came after the airline reported a 40% leap in full-year pre-tax profit of NZD 663 million.  New Zealand’s continuing tourism boom and lower fuel prices have boosted passenger numbers to produce the best result in the airline’s 76-year history.

Air New Zealand said 8200 staff members would receive the money.

The result comes a week after a record profit by Qantas on the other side of the Tasman, which also produced a bonus for staff.

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

Other significant items included NZD 86 million related to the partial divestment of Virgin Australia and NZD 57 million related to settlement of a long-standing class action cargo legal claim.

Chairman Tony Carter paid tribute to the airline’s staff, who were “critical to its success.

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

Chief executive Christopher Luxon said 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 NZD 260 million in total dividends and will pay income tax of around NZD 200 million for the year,” Luxon said.

Looking ahead, he acknowledged competition would increase as strong tourist demand to visit New Zealand continued and other international airlines added capacity.

“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,” Luxon said.

2016 Key achievements for Air New Zealand:

  • Record earnings before other significant items and taxation of NZD 806 million, up 70%
  • Record net profit before taxation of NZD 663 million, up 40%
  • Record net profit after taxation of NZD 463 million, up 42%
  • Operating revenue of NZD 5.2 billion, up 6.2% (3.8% excluding divestments and foreign exchange)
  • Passenger revenue of NZD 4.5 billion, up 8.9% (4.7% excluding foreign exchange)
  • Operating cash flow of NZD 1.1 billion, down 2.4%
  • Strong cash position of NZD 1.6 billion, up 21%
  • Gearing at 48.6%, an improvement of 3.8 percentage points
  • Fully imputed final ordinary dividend of 10.0 cents per share, bringing the 2016 full year fully imputed ordinary dividends to 20.0 cents per share, an increase of 25%
  • An additional fully imputed special dividend of 25.0 cents per share
  • Expected aircraft capital expenditure of NZD 2.1 billion over the next 5 years
  • Record customer satisfaction resulting from continued investment in aircraft, lounges, service quality and inflight experience
  • Company Performance Bonus for superior results of up to NZD 2,500 paid to all permanent employees who do not participate in a Short Term Incentive programme

Written by Peter Needham

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