Air NZ forecasts double profits for current financial year

Victoria
By Victoria August 31, 2012 11:00

Air NZ forecasts double profits for current financial year

Air New Zealand has forecast that it is in line to double its pre-tax profit to $182 million in the current financial year.
Rob Fyfe, the airline’s outgoing CEO, said the bullish outlook was based on stable figures. Post-tax profits fell by 12% to $71 million for the year ended June 30, although operating revenue rose to $4.5 billion and pre-tax profit was up 21% to $91 million.
But a strong domestic market and benefits from its transtasman alliance with Virgin Australia, means the airline is in a much stronger position.
“The only risk is if for some unforeseen reason the fuel price goes even higher and China instead of slowing from 7 per cent to 6 per cent goes to negative, but they’re low-probability issues,” Fyfe said.
He added: “We would have been delivering this sort of outlook 12 months ago
Air New Zealand has recently formed an alliance with ANA and said that other tie-ups were likely.
“Having to purchase new aircraft at $100 million or $200 million a pop is very challenging on the balance sheet,” Fyfe said. “Being able to partner with other airlines and utilise their equipment and capacity makes sense. You can expect to see more and potentially quite significant partnerships and alliances over the next 12 months.”

Victoria
By Victoria August 31, 2012 11:00
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