Demand for air travel that “exceeded expectations” has led to a rapid recovery for Air New Zealand, posting a full-year net profit of $412 million compared to a net loss of $591m the previous year.
Restored profitability came on the back of $585m in earnings before other significant items and taxation – the second highest result in the company’s history.
Operating revenue was $6.3 billion, up 132% for the year to June 30 compared to $2.7b the previous year.
Cargo revenue was down 38% on last year to $628m but up 61% on pre-Covid levels.
The cargo result included $98m in Government supported flights to March 2023 when the scheme ended.
The financial year began as borders were still reopening and aircraft were stored in the desert and ended with the airline at 94% of pre-Covid domestic capacity.
Having restored its international network, the airline carried out the biggest recruitment drive in its history and returned all aircraft to the skies.
Chief executive Greg Foran says the result follows a year in which the airline balanced customer, staff, community, and shareholder needs, while making investments for the years ahead.
“We have rehired and trained in a tight labour market, lifted the starting wage for the airport teams to $30 an hour and improved the way we work with digital systems on the ground and in the air.
“Restoring services to 500 flights a day is not only good for Kiwis who’ve been able to take that long planned holiday, but it has also brought tourist dollars back to the regions and supports exporters who rely on regular air freight,” Foran says.
“We know increased costs and high demand have made flying more expensive. In the past year we put more aircraft and seats in the air, so there are more choices for customers which helps alleviate the cost of flying. At the same time, our own costs continue to rise and the reality is that airfares are unlikely to return to pre-pandemic levels,” he says.
The airline has more than $3.5b in aircraft investment coming over the next five years. It has also announced an order for two new ATR turboprop aircraft for regional routes, as well as two new Airbus A321neos for its international short-haul network.
That’s in addition to the existing domestic Airbus A321neo orders, and the eight new Boeing 787 Dreamliners coming into the fleet as it retires its Boeing 777-300s over time.
