New Zealand · Delayed Price · Currency is NZD Air New Zealand Earnings Call Transcripts
Fiscal Year 2026
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Net loss after tax of NZD 40 million driven by engine disruptions, cost inflation, and flat capacity, with no interim dividend declared. Transformation benefits and liquidity remain strong, but outlook is cautious due to ongoing operational and cost headwinds.
Fiscal Year 2025
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Shareholders reviewed a resilient financial year marked by strong liquidity, ongoing transformation, and significant operational challenges from engine shortages. Leadership transitions, strategic fleet investments, and sustainability initiatives were highlighted, with robust engagement on governance and future plans.
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FY 2025 saw earnings before tax of $189 million, heavily impacted by engine issues and cost inflation, with compensation offsetting only a third of the $280–$320 million impact. Premium international demand remains strong, but domestic markets are soft; transformation initiatives are expected to deliver $200 million in benefits in FY 2026.
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Earnings before tax reached NZD 155 million despite significant engine-related disruptions, with strong liquidity and a share buyback announced. Domestic demand is stabilizing, international and cargo segments are robust, but the outlook remains cautious due to ongoing fleet constraints and cost pressures.
Fiscal Year 2024
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The company targets 4%-6% annual revenue growth, driven by premiumization, digital transformation, and loyalty expansion, while maintaining flat nominal CASK and strong liquidity. Fleet renewal, operational efficiencies, and a world-first 787 retrofit underpin long-term competitiveness and sustainability.
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The AGM highlighted a challenging year with lower profits due to engine issues and inflation, but showcased resilience through digital innovation, customer service improvements, and strategic investments. Shareholders re-elected two directors and received updates on sustainability, fleet plans, and new initiatives.
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Passenger growth and digital enhancements drove improved customer satisfaction, but earnings fell due to aircraft availability issues, inflation, and competitive pressures. Liquidity remains strong, with elevated CapEx and cost pressures expected to persist into FY25.