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Air New Zealand Solid Despite Odds |
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Written by Air NZ
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Thursday, 24 August 2006 |
Air New Zealand results solid against very challenging environment
Air New Zealand today announced a profit of $150 million before
unusuals and tax for the year ended 30 June 2006, 36 percent down on
the previous year.
"We clearly acknowledge this is not the result we would have liked to
have achieved at the end of the financial year," said John Palmer,
Chairman of the Board. "But given the extraordinarily challenging
business environment the airline is operating in, this is a respectable
result."
The Board declared a fully imputed final dividend of 2.5 cents per share.
The current expectation of the Board is to maintain the present dividend flows.
Net profit after tax was $96 million, 47 percent down on the previous period due to fuel price increases.
"Air New Zealand has outlined its plan for growing and
transforming its business into a nimble, innovative and thriving world
class airline," said Rob Fyfe, Chief Executive Officer.
"Over the last year we've demonstrated beyond doubt that we are
beginning to execute that plan, and we have done exactly what we said
we would."
The year closed with Air New Zealand:
o refurbishment of its 747 fleet on time and on budget;
o refurbishing lounges in Los Angeles and Melbourne;
o taking
delivery of 5 of its 8 new 777-200ER fleet, 4 new A320's and 8 of
subsidiary Air Nelson's 17 new Q300 fleet;
o launching a
new long haul service to Shanghai and a second daily service to London;
o successfully outsourcing wide-body aero engine maintenance;
o reducing corporate overhead costs;
o developing new in-house on-line booking software;
o unveiling a new network strategy;
o suspending flying on unprofitable routes such as Singapore, and
o actively investigating new and promising potential markets.
"It has been quite a year," said Mr Fyfe.
"We now have a world class in flight product, world class customer
service and we are growing a world class culture within this airline.
The challenge for us is to maintain those levels of performance."
Mr Fyfe said that in any other business environment Air New Zealand
should have seen an increase in its profit as a result of these
measures.
But an unprecedented 44 percent rise in the price of jet fuel has forced the company's profitability down.
"However we cannot solely hide behind fuel price increases as the excuse for our decrease in profitability," said Mr Fyfe.
"There are still more tough strategic, workforce and workplace
decisions to be taken to ensure Air New Zealand meets its potential.
"We are absolutely determined to ensure Air New Zealand grows and expands to be highly successful."
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Last Updated ( Monday, 29 January 2007 )
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Wednesday, 08 February 2012
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