The New Zealand-based airline’s expected poor results have come to fruition.
A challenging second half of the 2024 fiscal year has seen Air New Zealand’s earnings before taxation slump to $222 million, from $574 million a year ago.
Air NZ said it had expected the sizable reduction, attributing it to “operational and economic headwinds”, which became more pronounced during the second half of the year.
Net profit after taxation was also down 65% to $146 million, with the sinking numbers coming after one of Air NZ’s strongest-ever financial years in FY23, following the opening of the country’s borders.
However, in more positive news, revenue was up 11% to $5.6 billion, which it attributed to a 23% ramp-up in capacity, primarily across its long-haul network.
More details in today’s issue of Travel Daily.