Air New Zealand has reported a net profit of $146m for its 2024 financial year, covering the 12 months to the end of June.
The figure was down from a net profit of $412m in the previous year. Similarly, its latest financial year saw a pre-tax profit of $222m, which was down from a figure of $574m the previous year.
The earnings fall was expected, however, due to the previous year having been a near record 12 months for the carrier following the reopening of New Zealand’s borders in the aftermath of the Covid crisis.
Group revenue, however, did rise – from $6.33bn to $6.75bn.
The first half of the financial year was solid, but the second half was more challenging, with lower domestic passenger demand due to a tougher economic background in New Zealand, although passenger revenue still increased 11% to $5.9bn, thanks to a ramp-up in long-haul capacity.
Additionally, accelerated maintenance requirements for Pratt & Whitney PW1100 engines worldwide have meant that up to six of the airline’s newest and most efficient Airbus neo aircraft have been out of service at times. Ongoing additional maintenance requirements on the Trent 1000 engines that power the existing Boeing 787 Dreamliner fleet and reduced levels of spares in the market have meant that up to three Dreamliners are also on the ground at times.
These issues, alongside elevated competition from US carriers and the cumulative effect of high inflation, have had a significant impact on the airline’s operational and financial performance for the 2024 financial year.
Air New Zealand chairperson, Dame Therese Walsh, said: “We know these challenges will pass, some faster than others, but they have had a significant impact on our financial performance this year…
“Our balance sheet is robust, with capacity to prudently manage these headwinds while investing sensibly in the areas that matter for our people and our customers. We believe in the strength of our plan and our team and are excited about the opportunities ahead as we move out of this current cycle.”
