Growth in both revenue and volume from its cargo division helped Air New Zealand to report a record 70% increase in earnings to $806 million, and record net profit after tax increase of 42% to $463 million for the 2016 financial year.
Air New Zealand Cargo contributed $349 million of revenue in the year to June 30, 2016, an increase of 10% from revenue of $317 million in the previous 2015 financial year.
The national carrier says in its end of year report that increased the foreign exchange of 6.6%, and an increased 4.1% volume of cargo with a nominal decline in yield (-o.6%), was the driving force behind it’s increasing growth in revenue from this division.
Air New Zealand says the 4.1% increase in volume was the result of capacity increases from replacing the 767 fleet with new 787-9 aircraft in addition to the commencement of new routes.
Chief executive officer Christopher Luxon told the NZ Stock Exchange (NZX) it’s the best end of year result yet recorded in the company’s 76 years of operation.
The company’s board is awarding a performance bonus of up to $2500 to more than 8200 members of staff who do not have incentive programmes as part of their employment agreement.
