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 ยท 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 0.6617 0.0000 0.00%
AUD 0.9312 0.0000 0.00%
EUR 0.5883 0.0000 0.00%
GBP 0.4560 0.0000 0.00%
HKD 5.1599 0.0000 0.00%
JPY 74.9170 0.0000 0.00%

Commods

Commodity Price Change Time
Gold Index 1237.4 -9.140 2016-02-12T00:
Oil Brent 34.0 -0.490 2016-02-12T00:
Oil Nymex 31.9 3.190 2016-02-12T00:
Silver Index 15.8 0.000 2016-02-12T00:

Indices

Symbol Open High Last %
NZX 50 5987.0 5987.0 5987.0 -0.89%
NASDAQ 4307.3 4340.1 4266.8 1.66%
DAX 8854.4 8967.5 8752.9 2.45%
DJI 15691.6 15974.0 15660.2 2.00%
FTSE 5537.0 5707.6 5537.0 3.08%
HKSE 18278.8 18482.3 18545.8 -1.22%
NI225 15426.3 15437.2 15713.4 -4.84%