Air New Zealand Announces Best Earnings in Five Years

Air New Zealand recently announced earnings before taxation of $256 million for the 2013 financial year, an increase of 172 percent on the previous year and the company's best result in five years.

The net profit after taxation was $182 million, which is $111 million or 156 percent up on the previous year.

Operating cash flow was the highest ever at $750 million, and the company reported cash holdings of $1.15 billion. Gearing improved seven percentage points to 39.1 percent, a record low for the airline. 

Chairman John Palmer said the result places Air New Zealand among the best performing airlines globally. "We are focused on further improving on this result in the 2014 financial year. Based on the airline's forecast of market demand and fuel prices at current levels, early results and forward bookings are encouraging." he said in a statement. 

Air New Zealand has committed to investing NZ$1.8 billion in aircraft over the next three years. The aircraft due to enter the Air New Zealand fleet over the next three years are:

·         2 Boeing 777-300ERs

·         6 Boeing 787-9s

·         9 Airbus A320s

·         4 ATR72-600s

Palmer will retire as Air New Zealand Chairman at the Annual Shareholders' Meeting in Auckland on September 27 this year. He will be replaced by Deputy Chairman Tony Carter.