Air New Zealand announces record results

Air New Zealand announces record results

World Economy News

WELLINGTON: (World Economy) Air New Zealand announced record results on Friday amidst a tourism boom.

Net profit before taxation had risen 40 percent to NZ$663 million in the year to June.

New Zealand has experienced a tourism and migration boom in the past year with visitor arrivals up 11.2 percent to 3.34 million for the year ending July. American Airlines had launched an Auckland-to-Los Angeles service in June, with joint venture partner Qantas , ending the monopoly Air New Zealand had on the trans-Pacific route.

Other international airlines including Qatar Airways and China’s Tianjin Airways had also this year announced flights to New Zealand.

Air New Zealand said it was growing both its overseas and domestic business and expected to spend NZ$2.1 billion in the next five years on aircraft capital expenditure.

The company forecast earnings before taxation for 2017 to be between NZ$400 million and NZ$600 million, owing to the uncertain impact of competition.

The airline announced a final ordinary dividend of $NZ0.10 per share and an additional special dividend of NZ$0.25 per share.

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