Air NZ Exceeds Expectations

Air New Zealand is soaring new heights.

The airline has announced that it exceeded its expectations, registering pre-tax earnings of NZ$71 million or about NZ$91.48 million. Analysts were only expecting about NZ$44.5 million.

Air New Zealand’s annual profit, however, decreased 12 percent. Its net profit also declined to NZ$71 million or about NZ$55.48 million for the last financial year. Its net profit the previous year was posted at NZ$81 million.

According to Air New Zealand chairman John Palmer, the company is optimistic that it can strengthen its Australian operations. He added that although it is ahead of the target, the company will continue to implement measures to further improve its financial performance.

Palmer also said that he is not worried about the many uncertainties in the global economy. He said he expects Air New Zealand to deliver more than 100-percent improvement in its earnings.

The company also announced that its final dividend would be 3.5 cents per share.

Air New Zealand is just one of the five state-owned corporations that the New Zealand government has earmarked to be sold in the next five years.

The company’s revenue also increased to NZ$4.48 billion and gained 3.1 percent increase in passenger sales and 7.2 percent increase in cargo revenue.

According to Air New Zealand chief executive Rob Fyfe, the airline’s media domestic fares decreased this year even when oil prices and other airport charges increased.

Fyfe only lamented that if airport charges were not increased, Air New Zealand could have lowered fares even further.