Competition might have stiffened in the past year, but Air New Zealand has confirmed that the boom in airline profitability continues in this part of the world (and Qantas will add to that confirmation when it reports its 2016-17 figures on Friday).
The Kiwis’ favourite airline Wednesday reported its second highest profit on record – after the all time high in 2015-16.
As a result around 8,500 Air New Zealand staff will get a $NZ1700 bonus, down on thew $NZ2,500 individual payment for the 201516 financial year.
Air NZ reported an after tax profit of $NZ382 million for the year to June 30, down from last year’s $NZ463 million.
While this was down nearly 18%, profit before tax of $NZ527 million was the second highest in its history, and came in the face of what it described as an “unprecedented” increase in competition in the year.
June the company said earnings before taxation were likely to exceed $NZ525 million – which they did – just.
"This year Air New Zealand faced an unprecedented increase in the level of competition from some of the world’s largest airlines and effectively rose to the challenge," Air New Zealand chief executive Christopher Luxon said.
"The impressive way our team responded to the new competition while at the same time achieving commercial, customer and cultural excellence, helped to deliver our second highest profit ever.
The company said it was “optimistic about the overall market dynamics” and aimed to improve its earnings in the current 2017-18 year.
The shares are up more than 47% so far this year.
The bonus awarded by the board will go to Air New Zealand staff who do not have other incentive programmes as part of their employment agreement.
The airline also declared final fully (NZ) imputed dividend of 11 NZ cents a share up 10% on the final for the 2016 financial year.
That brought the full year dividend to 21 NZ cents a share, up one cent from the 20 cents a share ordinary payout last year.
Air NZ also paid a special 25 NZ cents a share dividend last year as well.
