Air New Zealand is looking for a “significantly low” financial performance from six months to the end of June as it continues to be affected by engine issues with the Airbus A320neo family aircraft and the Boeing 787 fleet.
Star Alliance operators have not provided detailed revenue guidance, stating that there is a “level of uncertainty” in the number of aircraft grounded due to engine reliability issues.
It is expected to have six jets (6 narrow bodies and five wide bodies) at any time until the end of fiscal year 2025, which ends on June 30th. The maintenance window may change this and add carriers.
The airline has already cut networks in the past few months, including a suspension of operations in Seoul and Chicago, and is easing grounding.
The outlook is as the airline reported a 16% decline to a 16% decrease ($88.3 million) in its pre-tax profit for the six months ended December 31, 2024.
Passenger revenue for the six months fell by 5% to $2.7 billion, down 5%, after aircraft grounding reduced capacity by 4%. However, this was a 6% increase in freight revenue, slightly offset by $257 million, resulting in a 2% decline in six-month operating revenue.
The airline has disclosed it has received NZ $94 million compensation for engine issues, but it is still not to compensate for the overall impact of grounding, estimated at up to $150 million over six months. It points out that it is insufficient.
“Even though they received a $94 million reward from the engine manufacturer, the airline estimates that if they managed to operate the aircraft as intended, their revenues would have been about $40 million higher in the first half,” he said. Masu.
Separately, the airline will begin a stock buyback program starting March 7th, with a target of up to $100 million in stock.
The Airline Chair Therese Walsh said the buyback “reflects our confidence in the strength of New Zealand's foundations and our commitment to providing value to shareholders, while also providing for the future. “We'll make sure it remains well placed.”
