ANZ profits slip

WELLINGTON Air New Zealand on Wednesday unveiled a 6% fall in half-year net profit, but said low fuel prices meant it remained on track for “significant” earnings growth in the second half.
New Zealand’s flag carrier said profit for the six months to the end of December was NZD133 million (USD100 million), down from the record NZD141 million in the previous period.
The airline said normalised earnings, which strips out factors such as foreign exchange hedging, rose 20% to NZD216 million.
Chairman Tony Carter said the result demonstrated that Air New Zealand was “one of the few airlines in the world that is able to generate sustainable profits”.
“The result is one that shareholders can be very pleased with,” he said.
Inside 8Carter reiterated guidance from last year that Air New Zealand could expect a significant additional improvement in earnings in the second half of the financial year if jet fuel price levels remained consistent.
“Fuel prices are lower than November and the sales momentum has been maintained, further strengthening the company’s outlook for the current year and beyond,” he said.
The result included a NZD14 million loss attributed to Air New Zealand’s stake in Virgin Australia, which last week announced it had cut its interim loss to AUD47.8 million.
Chief executive Christopher Luxon said the airline was “very comfortable” with its Virgin holding, which gives it exposure to the Australian domestic market.
“Our 25.92% shareholding in Virgin Australia remains a key pillar of our Australasian strategy, and it has been pleasing to see that company delivering better results as market conditions improve in domestic Australia,” he said.

sourced:ttrweekly.com