Air New Zealand stuck strictly to the balance sheet at a media briefing this morning, with no response to questions about the drink-driving scandal involving staff members.The airline (NZX:AIR) reported an after-tax net profit of $56 million to December 3
Air New Zealand stuck strictly to the balance sheet at a media briefing this morning, with no response to questions about the drink-driving scandal involving staff members.
The airline (NZX:AIR) reported an after-tax net profit of $56 million to December 31, up from $24 million in the same period last year.
Earnings before finance costs, depreciation, amortisation, rental expenses and taxation was up 7% from $356 million to December 2008, to $382 million in 2009.
The company experienced a 15% drop in operating revenue to $2.1 billion.
Normalised earnings before tax of $96 million compared to $70 million on the same period last year.
Normalised earnings after tax of $64 million were close to Forsyth Barr’s forecast of $61 million.
Passenger demand was down 4.6%. The passenger load factor was up 3 percentage points to 81.6%.
Air New Zealand had $1.1 billion net cash at December 2009. Net gearing (including capitalised operating leases) stayed low at 46%.
The board declared a fully imputed interim dividend of .3 cents a share.
Chairman John Palmer said it was a good result in very challenging conditions.
“The fallout from the global financial crisis continued to make operating conditions extremely difficult. This has been reflected in lower passenger numbers, cargo volumes and yields, resulting in a 15% reduction in revenues.
“At the same time, fuel prices have returned to more stable levels following unprecedented volatility in the 2009 financial year.”
He said management was focused on closely aligning capacity with demand and the ability to deliver innovative solutions to significantly enhance the airline’s competitive position.
Chief executive Rod Fyfe said innovation would remain a key theme for the year ahead. “We have set out to create a culture that enables Air New Zealanders to have the confidence to think outside the square and to proactively and creatively pursue solutions.”
The next 12 months would be one of the most defining in the airline’s history, with competitors scrambling to keep up, he said.
“There is no question the next year will set the direction and identity of our airline for the next decade.”
Outlook
The airline said the trading environment had stabilised, although demand and average fares remained significantly lower.
This year, it expected a more normal seasonal balance compared to recent periods where fuel prices and foreign exchange rates were volatile.
If current rates continued, Air New Zealand would make a foreign exchange hedging loss of about $20 million in the second half of the year compared to a $24 million gain in the first half, it said.
Air New Zealand shares last traded at $1.31.
