Air NZ reiterates target for pretax earnings to more than double

Air New Zealand has reiterated its target for full-year earnings to more than double, driven by a rebound in the first six months of the year. The shares rose after the announcement.

The Auckland-based company first gave the forecast with the release in late August of its full-year results, saying it was based on the assumption of market demand and fuel prices at elevated levels.

Normalised earnings before tax were $91 million in 2012, so the prediction implies a 2013 result of at least $182 million.

The airline's guidance for the first half, ending December 31, was for normalised earnings in a range of $120 million to $140 million, a recovery from the same period last year, when high fuel costs and a fall in international passenger numbers cut pretax earnings to just $33 million.

The shares climbed 1.6% to $1.265 on the NZX today and have climbed 38% this year. The stock is rated "outperform" based on the consensus of seven recommendations compiled by Reuters, with a price target of $1.41.

The first-half forecast implies a weaker second half, which the airline says follows its traditional seasonal pattern.

Air New Zealand, which is 73%-owned by the Crown, is among five of the state-owned assets that the National-led government has earmarked for a sell down over the next five years.

(BusinessDesk)

This article is tagged with the following keywords. Find out more about My Tags

1 Comment & Question

Commenter icon key: Subscriber Verified

Amazing how a company can talk up its earnings just as its senior management team prepare to exit it. Anyone would think that long-term incentive plans (which are tied to earnings) were about to mature.

Reply
Share

Post New comment or question

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

NZ Market Snapshot

Forex

Sym Price Change
USD 0.7860 -0.0017 -0.22%
AUD 0.9203 -0.0026 -0.28%
EUR 0.6306 0.0008 0.13%
GBP 0.5001 0.0013 0.26%
HKD 6.0928 -0.0128 -0.21%
JPY 92.6840 0.0370 0.04%

Commods

Commodity Price Change Time
Gold Index 1196.6 -2.970 2014-11-26T00:
Oil Brent 79.4 -0.640 2014-11-26T00:
Oil Nymex 73.7 -0.340 2014-11-26T00:
Silver Index 16.6 0.000 2014-11-26T00:

Indices

Symbol Open High Last %
NZX 50 5457.4 5462.1 5457.4 -0.04%
NASDAQ 4760.2 4788.0 4758.3 0.61%
DAX 9934.8 9992.7 9915.6 0.57%
DJI 17812.2 17833.8 17814.9 0.00%
FTSE 6729.2 6749.9 6729.2 -0.07%
HKSE 24169.8 24228.1 24112.0 -0.45%
NI225 17310.5 17346.8 17383.6 -0.78%