Air New Zealand has announced a significant decrease in earnings for the 2024 financial year, with profits falling by more than half compared to the previous year.
The national carrier reported earnings before taxation of $222 million, down from $574 million in 2023.
Net profit after taxation also declined to $146 million from $412 million the year before.
Despite the profit slump, passenger revenue increased by 11 percent to $5.9 billion, driven by a 23 percent increase in capacity across the airline’s network.
Air New Zealand Chair Dame Therese Walsh acknowledged the challenging year, citing macroeconomic and operational issues as key factors affecting the airline’s performance.
“It’s been a difficult year managing both macroeconomic and operational challenges. I’d like to thank the Air New Zealand whānau, not only for navigating these issues with great skill and manaaki, but also for never losing sight of what the organisation needs to do to be a future-fit airline,” Dame Therese said.
The airline faced several headwinds, including a weaker domestic demand environment, particularly in the corporate and government segments.
Maintenance issues with Pratt & Whitney PW1100 engines and Trent 1000 engines resulted in up to nine aircraft being grounded at times, significantly impacting operations.
Chief Executive Officer Greg Foran acknowledged the challenges faced by the airline and thanked customers for their patience.
“I want to acknowledge the understanding and loyalty of our customers who were impacted by unavoidable scheduling changes while travelling with us this year. We do not take our customers choice to fly with Air New Zealand for granted and are grateful for the patience they have shown us,” Mr Foran said.
Despite the difficulties, Air New Zealand declared a final unimputed ordinary dividend of 1.5 cents per share, bringing the total ordinary dividends for the year to 3.5 cents per share.
The airline remains committed to investing in its future, with planned aircraft-related capital expenditure of $3.2 billion over the next five years.
This includes a significant interior retrofit programme for existing Dreamliner aircraft and the anticipated delivery of new GE-powered Boeing 787-9 aircraft from late 2025.
Air New Zealand expects the challenging trading conditions to persist through the first half of the 2025 financial year.
Due to ongoing uncertainty, the airline has not provided specific guidance for the upcoming period.
