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 0.7709 0.0011 0.14%
AUD 0.9472 0.0003 0.03%
EUR 0.6245 0.0006 0.10%
GBP 0.4944 0.0004 0.08%
HKD 5.9783 0.0083 0.14%
JPY 91.3730 -0.0820 -0.09%

Commods

Commodity Price Change Time
Gold Index 1189.4 -2.770 2014-12-17T00:
Oil Brent 61.2 -1.020 2014-12-17T00:
Oil Nymex 56.8 0.920 2014-12-17T00:
Silver Index 15.9 0.138 2014-12-17T00:

Indices

Symbol Open High Last %
NZX 50 5496.6 5532.8 5496.6 0.40%
NASDAQ 4556.9 4651.9 4547.8 2.12%
DAX 9455.7 9589.2 9563.9 -0.20%
DJI 17069.2 17389.3 17068.9 1.69%
FTSE 6331.8 6359.7 6331.8 0.07%
HKSE 22878.3 22935.0 22585.8 0.87%
NI225 17143.0 17274.2 16819.7 2.33%