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)


1 · Got a question about this story? Leave it in Comments & Questions below.

This article is tagged with the following keywords. Find out more about MyNBR 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
  • 0
  • 0

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 0.6601 -0.0062 -0.93%
AUD 0.9052 -0.0064 -0.70%
EUR 0.6040 -0.0024 -0.40%
GBP 0.4231 -0.0037 -0.87%
HKD 5.1192 -0.0456 -0.88%
JPY 81.9570 -0.5930 -0.72%

Commods

Commodity Price Change Time
Gold Index 1092.6 -3.600 2015-07-29T00:
Oil Brent 53.4 0.080 2015-07-29T00:
Oil Nymex 48.8 0.790 2015-07-29T00:
Silver Index 14.7 0.100 2015-07-29T00:

Indices

Symbol Open High Last %
NZX 50 5870.8 5899.0 5870.8 0.36%
NASDAQ 5100.3 5135.6 5111.7 0.33%
DAX 11305.5 11313.3 11211.9 0.40%
DJI 17743.2 17761.2 17751.4 -0.03%
FTSE 6631.0 6697.4 6631.0 0.57%
HKSE 24822.4 24872.7 24619.5 -0.49%
NI225 20450.6 20583.6 20302.9 1.08%