“We are thrilled with the performance of our network in the period,” Chief Executive Officer Christopher Luxon said. “The domestic market continues to show strength driven by the New Zealand economy as well as inbound tourism, and we will be increasing capacity approximately six percent across our regional and jet services to support that demand over the second half of the financial year.”
“The Trans-Tasman and Pacific Island routes have also responded strongly to additional wide-body services and targeted capacity increases. Finally, our alliance partnerships continue to drive value across our international long-haul network, and have been a key factor in our ability to effectively compete against much larger airlines.”
Air New Zealand has announced earnings before taxation for the first six months of the 2018 financial year of $323 million, compared to $349 million in the prior period (net profit after taxation was $232 million)
The result was driven by operating revenue growth of 5.6 percent, with robust demand across all markets and particularly strong growth in the short-haul network. Passenger revenue reached an all-time record for an interim result, at $2.3 billion.
The airline’s continued focus on sustainable cost initiatives also contributed to the interim performance, as efficiencies offset the impact of inflation on unit costs, excluding fuel. Cash flow from operations grew $103 million or 27 percent to $479 million, driven by growth in cash operating earnings and a strong working capital cash flow as the business grows.
The airline also announced the launch of a new direct service to Taipei, beginning in November 2018. Taipei will become the airline’s seventh destination in Asia, and is another strong addition to Air New Zealand’s focused strategy of connecting the Pacific Rim to New Zealand. Taipei is an economic centre with renowned attractions, cuisine and shopping, and the airline is excited to offer travellers the opportunity to explore this new destination.
