Air New Zealand overcomes tough times to look forward to 2013

Air New Zealand overcomes tough times to look forward to 2013

Air New Zealand is looking forward to a positive 2013 after overcoming a challenging period over the past three years.

Reporting a 12 per cent fall in net profits, to NZ$71 million, chairman John Palmer said the airline had come through the “though times” in a stronger position.

Normalised earnings before taxation and excluding net gains and losses on derivatives grew at the airline grew by 21 per cent to NZ$91 million.

Operating revenue was up three per cent at NZ$4.5 billion.

Passenger numbers remained near flat at 13.1 million, while load factor fell by 0.6 percentage points to 82.8 per cent.

Chairman John Palmer said: “We have come through some tough times and the worst impacts of natural disasters like the Christchurch earthquake and tsunami in Japan are behind us, which means growth opportunities are no longer suppressed.

“We view the future with optimism and are pursuing a clear strategy to strengthen our Australasian operations, while being ahead of target in restructuring our international long-haul network to improve financial performance.”

Initiatives to improve portability at the airline include an overhead cost review, a continued focus on ancillary revenue opportunities, and investing in a modern fuel-efficient and less maintenance-intensive fleet.

Air New Zealand has also been developing a closer relationship with Virgin Australia, in which it holds a 19.99 per cent interest, and re-engineering its international network to ensure it serves the most lucrative markets.

The full financial results can be seen here.