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Air NZ on track for profit announces non-stop Taipei

February 26, 2018 Headline News No Comments Email Email

Air New Zealand has reported a half-yearly interim result of NZD 323 million (AUD 300.3 million), placing it on track for the second-highest profit over a six-monthly period in company history.

The airline has also announced the launch of non-stop services between Auckland and Taipei, capital of Taiwan.

New Zealand airline announced its earnings before taxation for the first six months of the 2018 financial year. The result compares to NZD 349 million (AUD 324.5 million) in the prior period. Net profit after taxation was NZD 232 million (AUD 215.7 million).

The result was driven by operating revenue growth of 5.6%, with robust demand across all markets and particularly strong growth in the short-haul network, the carrier reported.

Passenger revenue reached an all-time record for an interim result, at NZD 2.3 billion. The airline’s continued focus on sustainable cost initiatives also contributed to the interim performance, as efficiencies offset the impact of inflation on unit costs, excluding fuel. Cash flow from operations grew NZD 103 million or 27% to NZD 479 million, driven by growth in cash operating earnings and a strong working capital cash flow as the business grows.

Chairman Tony Carter said shareholders could be very pleased with the high quality financial performance demonstrating the airline’s resilience despite an 18% increase in fuel price.

“This high quality interim performance was driven by robust passenger demand and revenue growth, reflecting the airline’s strong position in New Zealand and throughout our Pacific Rim network.”

The declared a fully imputed interim dividend of 11 cents per share, an increase of 10% from the prior period and the highest ordinary interim dividend in the airline’s history.

Interim highlights

  • Earnings before taxation of NZD 323 million.
  • Net profit after taxation of NZD 232 million.
  • Operating revenue of NZD 2.7 billion.
  • Record passenger revenue of NZD 2.3 billion.
  • 8.5 million passengers carried during the period.
  • Capacity increased 3.4%.
  • Operating cash flow of NZD 479 million.
  • Board approves fully imputed interim dividend of 11.0 cents per share, a 10% increase on the prior period and the highest ordinary interim dividend in the airline’s history.
  • Reaffirms full year guidance based upon current market conditions and despite the increased price of jet fuel, with the Company still expecting 2018 earnings before taxation to exceed the prior year. 

MEANWHILE, Air New Zealand has announced it will start operating non-stop flights between Auckland and Taipei from November 2018.

The airline will fly up to five times a week between Auckland and Taipei’s Taoyuan International Airport from November, with NZ77 departing Auckland at 10:35am and arriving in Taipei at 4:50pm local time. NZ78 will depart Taipei at 6:30pm local time, arriving in Auckland at 10:20am+1.

With a flight time of just over 11 hours, the service from Auckland to the central Asian destination will be operated by Air New Zealand’s B787-9 Dreamliner aircraft.

The announcement comes after the airline launched direct services to Houston and Buenos Aires in December 2015 and Ho Chi Minh City, Vietnam in June 2016.

Written by Peter Needham



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