We are fundamentally in a strong position, insists Air NZ Chair, Therese Walsh, despite challenges.
Following a less than rosy full-year profit outlook earlier this week, Air New Zealand has released its latest interim results showing earnings before taxation of NZ$185 million for the first half of the 2024 financial year.
The carrier also delivered a net profit after tax result of NZ$129 million, with management conceding inflationary pressures across the business will lead to a review of its fares and capacity to better reflect heightened costs.
In the corresponding period last year, the airline recorded a NZ$213 million net profit after tax.
“We knew this year would be tougher than the last, when pent-up levels of demand and industry-wide capacity constraints drove one of the strongest financial results in our history,” Walsh said.
“While we have reported a solid first half result, it is against the backdrop of significant ongoing supply chain issues, particularly the additional Pratt & Whitney engine maintenance requirements on our A321neo fleet, which will see up to five of our newest and most efficient aircraft out of service at any one time across the next 18 months at least,” she added.
In light of these conditions, Air New Zealand said its performance for the second half of the 2024 financial year will be “markedly lower than the first half”.
More details in today’s issue of Travel Daily.